Abstract:

To stimulate the market vitality of remanufactured products， the government and enterprises are implementing an innovative model of “insurance+remanufacturing”. Insurance claims patterns and remanufacturing rate concession decisions by insurance companies significantly impact the promotion of remanufactured products. A critical issue to explore is optimizing the market for remanufactured products by setting up a reasonable insurance claim model， remanufacturing rate concessions， and government subsidies. Considering two claims models of insurers， dynamic game models are constructed to investigate the effects of insurance claims models， remanufacturing rate discounts， and government subsidy strategies on the equilibrium decisions， demand， and profits of closed-loop supply chain stakeholders. The results show that：The insurer’s operating model of only incorporating remanufactured parts into the repair parts system is not always the optimal way to promote remanufactured parts. When the insurance claim rate is higher than a certain threshold， the insurer can promote more remanufactured parts by incorporating both new and remanufactured parts in the repair parts system. Government subsidies can increase the profit of the remanufacturer， and subsidizing consumers who use remanufactured parts is more beneficial than subsidizing the remanufacturer， but it is also more damaging to the manufacturer’s profit. However， the impact of government subsidies on the insurer’s profits also depends on the subsidy amount. Specifically， government subsidies can increase the insurer’s profit when the subsidy amount is large， and subsidizing consumers who use remanufactured parts can increase the profit more than subsidizing the remanufacturer， but government subsidies will hurt the insurer’s profit when the subsidy amount is small. Finally， numerical experiments are carried out to verify this paper's important conclusions and inferences. The findings of this paper will not only provide management insights for manufacturers/remanufacturers and insurers， but will also provide decision support to governments in developing their subsidy strategies.

Key words: remanufacturing, insurance claims model, insurance rate discounts, government subsidies, game theory