Remanufacturing model selection with 3D printing

Abstract

This paper investigates a two-echelon 3D printing (3DP) remanufacturing supply chain consisting of the original equipment manufacturer (OEM) and the retailer, and builds a Stackelberg game model with OEM remanufacturing and retailer remanufacturing. We use backward induction to obtain the optimal 3DP usage level, product price, and profit of the supply chain under different remanufacturing models. Through the comparison of the optimal decisions of the two remanufacturing models, we analyze the impact of the 3DP cost, sensitivity coefficient, and licensing fee on the 3DP strategy and model selection. The results show the following: First, the effect of the 3DP correlation coefficient on the price of new products varies with different remanufacturing entities. Second, when the market size variation coefficient of remanufactured products is small, the optimal 3DP usage level under the OEM remanufacturing model is higher than that under the retailer remanufacturing model. Third, the OEM’s choice of remanufacturing model is affected by the market size variation coefficient, 3DP cost and licensing fee. The research findings of this paper can provide decision support for the application of 3D printing technology in the field of remanufacturing.