Abstract
Due to the need for resource utilization and environmental protection, remanufacturing is used as an effective means to achieve a circular economy. To focus on the production and sales of new products, manufacturers outsource the remanufacturing of used products to remanufacturers. Aiming at helping manufacturers to choose between self-remanufacturing and outsourcing remanufacturing policies, a closed-loop supply chain network equilibrium model considering the remanufacturing policy options is established. The equilibrium decision-making is obtained by using the variational inequality method. Furthermore, the criteria for manufacturers to choose between the two remanufacturing policies based on different factors such as recovery rates of the used products, remanufacturing costs, and environmental impact parameters, are given. Numerical examples show the following results: (1) When compared with self-remanufacturing policy, outsourcing remanufacturing policy can save resources, increase the sales of products, and have a smaller environmental impact. (2) When the recycling rate of used products is low, choosing an outsourcing remanufacturing policy can increase the sales of products. When the recycling rate is high, choosing a self-remanufacturing policy can get more profits. (3) When the costs of a self-remanufacturing policy and an outsource-remanufacturing policy are quite different, choosing the outsourcing remanufacturing policy can save resources and protect the environment.
Highlights
Due to the rapid development of industrialization and rapid product updates, the problems of global environmental pollution and resource shortages are becoming more and more serious
Our study considers a competitive closed-loop supply chain (CLSC) network, in which every original equipment manufacturers (OEMs), such as Kodak, IBM, Bosch, Xerox, Fuji, and Dell [1], can choose self-remanufacturing or outsource the remanufacturing business to 3PRs according to profits, sales volumes, costs, resources, and environmental impacts
From the analysis of this section, it can be seen that the choice of the outsourcing remanufacturing policy of the original manufacturers will reduce the use of raw materials, increase the utilization rate of used products, and reduce the environmental impact
Summary
Due to the rapid development of industrialization and rapid product updates, the problems of global environmental pollution and resource shortages are becoming more and more serious. After the manufacturing companies have outsourced their remanufacturing businesses, they can change their disadvantaged positions in the competition by recycling more used products, increasing their resource utilization rate, and reducing environmental impact. (1) How can an equilibrium model of the CLSC network that considers self-remanufacturing and outsourcing remanufacturing policy options be established? To study these issues deeply, this article focuses on the CLSC network equilibrium that considers the original manufacturers’ self-remanufacturing and outsourcing remanufacturing options. A CLSC network equilibrium model considering self-remanufacturing and outsourcing remanufacturing options is constructed and analyzed for the first time in the literature. In the remainder of this paper, the literature review is given in Section 2, the model description is given in Section 3, the numerical analysis is given in Section 4, and the conclusion is given in the last section
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