Abstract
With more and more end-of-life products in daily life, many companies are engaging in remanufacturing, including backward production capacity (BPC) enterprises. Meanwhile, take-back regulation always asks the manufacturer to take back end-of-life products to reduce pollution. However, the effect of take-back regulation on remanufacturers remains unclear. In this paper, we first analyzed the take-back regulation threshold with the elimination effect. We then discussed the impact on stakeholders, such as the manufacturer, the remanufacturer, consumers, and the government. A two-stage dynamic market model is proposed, which considers the market with/without BPC remanufacturer. Take-back regulation’s elimination effect is studied, and the results show that when the collection target reaches the elimination threshold, the manufacturer’s profit declines, the BPC remanufacturer is eliminated, consumer surplus decreases, and social welfare is improved. Besides, to cope with a high take-back regulation target, the manufacturer will reduce new product output, which leads to BPC remanufacturer’s benefits decline. A numerical study is given with a different collecting strategy of the BPC remanufacturer, the incentive interval, the inhibition interval, and the elimination interval of the take-back regulation for stakeholders which are described. At last, some managerial insights are given to help the regulator implement take-back regulation.
Highlights
We find that the manufacturer is happy to see the level of take-back regulation increasing enough to eliminate the Backward Production Capacity (BPC) remanufacturer
Social welfare keeps increasing with the collection target, but we find that social welfare suddenly rises when the collection target reaches its elimination threshold
We focus on the changes from each perspective, after backward production capacity remanufacturer was eliminated by regulation
Summary
An increasing number of enterprises worldwide are willing to take back end-of-life (EOL) products and remanufacture them. E main reason is that this part of the market could be profitable for anyone in this field. E colossal profit cake has lured many enterprises eager, including some advanced manufacturers (such as Cat Reman and Wealdstone) and Backward Production Capacity (BPC) companies. For EOL products, collectors typically have the following treatment methods: incineration, burial, recycling, dismantling, and so on. In the processing of EOL products, taking back and remanufacturing have become the choice of many manufacturers because of their superior economic impact and environmental protection effects. Mercedes-Benz opens the remanufacturing industry to take back used items and sell remanufactured core components (such as motors, water pumps, and jet pumps) to consumers
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
