主管:中国科学院
主办:中国优选法统筹法与经济数学研究会
   中国科学院科技战略咨询研究院

Chinese Journal of Management Science ›› 2022, Vol. 30 ›› Issue (9): 255-262.doi: 10.16381/j.cnki.issn1003-207x.2021.0005

• Articles • Previous Articles    

Recycling and Remanufacturing of E-products with Two Periods under Government’s Take-Back Regulation

XU Jie1, LUO Chun-lin1, TIAN Xin2,3   

  1. 1. School of Information Management, Jiangxi University of Finance and Economics, Nanchang 330013, China;2. Research Center on Fictitious Economy and Data Science, Chinese Academy of Sciences, Beijing 100190, China;3. School of Economics and Management, University of Chinese Academy of Sciences, Beijing 100190, China
  • Received:2021-01-02 Revised:2021-05-08 Published:2022-08-31
  • Contact: 罗春林 E-mail:chunlinluo@126.com

Abstract: The amount of waste electronic product has been growing in recent years. Topic on environmental issue has received huge attention, and the take-back regulation has been enacted in different regions and countries around the world. In this paper, the operations decision of an electronic manufacturer in the presence of recycling and remanufacturing products under the government’s take-back regulation is considered. At the beginning of the first period, the manufacturer decides the price of the new product. At the end of the first period, used products are collected and remanufactured by the manufacturer under the government’s take-back regulation. Then in the second period, the manufacturer decides the prices of the new product and the remanufactured product. An economic model is formulated aiming to maximize the manufacturer’s profit which is subject to the quantity constraint, i.e., the remanufactured product quantity is less than the maximum collection that can be attained by the manufacturer. In addition, the maximal collection rate is considered to be endogenous. The manufacturer’s optimal decisions can be obtained by backward induction. Our results show that (1) there are five operational remanufacturing strategies for the manufacturer, contingent on the combination of reverse operational cost (sum of collecting cost and remanufacturing cost) and new product manufacturing cost. (2) When the reverse operationalcost is lower than a certain threshold, the take-back regulation will not hurt the manufacturer. Otherwise, the regulation will decrease the manufacturer’s profit, because the high reverse operational cost discourages the manufacturer’s incentive of recycling. Finally, we take iPhone 8 as an example to conductan empirical study. Data in our model is obtained in the following way. The used product collection cost can be found from Apple’s official website, and other dataabout parameters can be obtainedfrom existing literatures.Numerical study shows that our model is robust. In summary, these findings can contributeto the stream of product remanufacturing and help the decision makers to recycle and remanufacture electronic products.

Key words: electronic products; regulation; two periods; remanufacturing

CLC Number: