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Chinese Journal of Management Science ›› 2018, Vol. 26 ›› Issue (8): 54-66.doi: 10.16381/j.cnki.issn1003-207x.2018.08.006

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Multi-period Closed-loop Supply Chain Network Equilibrium with Design Level for Remanufactureability

ZHANG Gui-tao1,2, QU Xiao-yu2, DAI Geng-xin2, HU Jin-song2, WANG Yong-bo2,3, SUN Hao2   

  1. 1. College of Automation and Electronic Engineering, Qingdao University, Qingdao 266071, China;
    2. School of Business, Qingdao University, Qingdao 266071, China;
    3. Qingdao Air Force Aeromedicine Identification Training Center, Qingdao 266071, China
  • Received:2016-06-27 Revised:2017-12-07 Online:2018-08-20 Published:2018-10-22

Abstract: The remanufactureabale design has been used in some companies, which can benefit the remanufacturing process. However, extra investment is also needed in the product design. Therefore, the enterprise especially manufacturers want to decide the remanufactureabale design level in production. In this paper, a kind of remanufactureabale design level implementation scheme of manufacturers is investigated under the multi-period decision making environment. In order to describe the change of the supply chain network, the decision making time is discreted to several periods. And the adjacent periods are connected with by recycling products cross-period use, and inventory transfer of new products and remanufacturing products. At present, the relevant literature manly focuses on the supply chain with one manufacturer and one retailer, and not fully expresses the competition among the same type players. In this paper, a closed-loop supply chain(CLSC) network comprises multiple competitive manufacturers, multiple competitive retailers and multiple demand markets. The government regulates the lowest remanufactureabale design level, based on this regulation, the manufacturers make decisions for the remanufactureabale design level of new product, the production and transaction amount. In the forward channel, the manufacturers and retailers sell new products and remanufactured products, and in the reverse channel, the retailers, commissioned by manufacturers, collect used products from demand markets at the end of every period. To simplify the question, it is supposed that the used products can only be recycled and remanufactured once; the consumers in the demand markets evaluate the new product and remanufacturing product differently, thus the prices paid to the two kinds of product are different. Using the variational inequality and other theories, the equilibrium condition of the manufacturers and retailers are obtained, and then the integrated supply chain network equilibrium model is formulated. The modified projection and contraction method is employed to solve model. The numerical examples are provided to analyze the impacts of remanufacturing invest factor of remanufactureabale design level, the factor of consumers evaluation for the remanufactured products, the lowest regulation remanufactureable design level on the supply chain network equilibrium results. The results show that enterprises should increase the invest in the remanufactureabale design activity, when the evaluation of consumers for the remanufacturing products increases, the profit of manufacturers decreases at beginning and then increases. And these managerial insights can provide some references in the decision process of remanufactureable design level of manufacturers and related sectors of government.

Key words: supply chain network, multi-period, remanufactureability, design level, differential pricing

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