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Chinese Journal of Management Science ›› 2009, Vol. 17 ›› Issue (5): 104-112.

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Decision Analysis on Collection and Remanufacturing of Used Products Based on Different Power Structures

SUN Hao, DA Qing-li   

  1. School of Economics and Management, Southeast University, Nanjing 211189, China
  • Received:2008-09-23 Revised:2009-09-15 Online:2009-10-31 Published:2009-10-31

Abstract: This paper studies decision-making on collection and remanufacturing of used products with four different power structures,including Manufacturer-leading,Collector-leading,Vertical Nash equilibrium and Centralized decision. The optimal solutions of decision variables are given and compared among these four power structures. The research shows that the system benefits under three decentralized cases are not optimal,compared with centralized decision. The system benefit under Vertical Nash equilibrium is strictly super to that of Manufacturer-leading. When the collector leads in the reverse supply chain,the system benefits can achieve the level of the centralized decision in some conditions. In contrast,in the cases of Manufacturer-leading and Vertical Nash equilibrium,the system benefits can never achieve it.Exp ense sharing contract and two-tariff contract are used to coordinate the reverse supply chain under the structure of Manufacturer-leading and Collector-leading,respectively.

Key words: reverse supply chain, power structure, coordination, remanufacturing, expense sharing contract, two-tariff contract

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