Abstract: Accompanying the decrease of resources and the aggravation of environmental pollution, many countries have chosen to develop circular economy as an important way to achieve sustainable development of economy and society. As an effective way to promote the development of circular economy, remanufacturing has been valued by more and more enterprises. Many companies,such as Apple, IBM, HP, Dell etc, have carried out remanufacturing activities. Meanwhile, remanufacturing management and decision making become a hot topic in the literature. Considering the second-hand market, the demand functions of new durable goods, old durable goods and remanufactured durable goods are calculated by using the consumer utility model. The decision model of maximizing the profit of durable goods monopolist is put forward by employing these demand functions. In terms of Stationary equilibrium and optimization analysis, the remanufacturing strategy selection problems for durable goods monopolist are discussed. At last, some conclusions are proposed. There are some thresholds, which including new durable goods cost, manufacturing cost, consumer acceptation and old durable goods depreciation rate. Only when the new durable goods cost and remanufacturing cost are lower than the thresholds, consumer acceptation is higher than the threshold, the old durables depreciation rate is lower than the threshold, durable goods monopolist should select the remanufacturing strategy. Remanufacturing strategy will not only cause cannibalism on new durable goods market, but also on the secondary market. There is a threshold of the old durable goods utilization rate. When the old durable goods utilization rate is higher than the threshold, remanufacturing strategy can obtain durable goods market growth effect. Moreover, the higher the new durable goods cost is, the more obvious the market growth effect is. All findings suggest that several key factors should be considered when durable goods monopolist chooses the remanufacturing strategy, such as new durable goods cost, manufacturing cost, consumer acceptation, old durable goods depreciation rate and utilization rate, which could provide reference for related durable goods enterprises.

Key words: second-hand market, durable goods, remanufacturing, utility function, stationary equilibrium