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Research on Remanufacturers’ Competitive Strategies in Closed-loop Supply Chain

Author: LuoZiCan
Tutor: LuoDingTi
School: Hunan University
Course: Management Science and Engineering
Keywords: closed-loop supply chain remanufacturing market structure game theory simulation
CLC: F274
Type: Master's thesis
Year: 2010
Downloads: 71
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Abstract

As people’s awareness on environmental protection and sustainable development in the deepening, relevant environmental protection laws and regulations constantly improve, so that enterprises are experiencing transformation from the traditional supply chain to the closed-loop supply chain. However, closed-loop supply chain companies not only to the face of problem as members of the chain caused by inconsistent operational efficiency throughout the supply chain, lower, less profitable, and so on, but also how to maintain reasonable profit levels and what kind of strategy which compete with manufacturing enterprises, when chain of manufacturing enterprises need to address the manufacturing model to be remanufactured from a paradigm shift. So, in this paper, based on supply chain management theory and remanufacturing technology, starting from market structure, using of optimization, game theory and evolutionary dynamics tools and so on, and using the method of combining with quantitative and qualitative analysis, to explore the issue which the remanufacturing enterprises of the closed-loop supply chain of competition in the three kinds of market structure.This paper’s main research work and achievements:1. In the monopolistic market. Optimization method used to establish a monopoly of the largest manufacturers expected profit model that monopolies are only engaged in manufacturing and at the same time engaged in the manufacture and remanufacturing. The results show that there is a certain proportional relationship between the new products and remanufactured goods in the both case. The change of purchase prices of raw materials and manufacturing costs will impact on new products, remanufactured goods sales and corporate profits. With manufacturing costs rising, however, engaged in the manufacture and remanufacturing of the monopoly manufacturer of the largest expected profit will fall, the profit will gradually more than the monopoly manufacturer of the largest expected profit which engaged in the manufacture. This will lead to a monopoly manufacturer engaged in remanufacturing.2. In the oligopolistic competitive market. Discussing and analyzing the problem that the manufacturers, remanufacturers and buy-back of waste products by business’product sales volume and profits. The results show that market conditions and consumer preferences impact on product sales and corporate profits. Remanufacturers can achieve the purpose of enhancing sales and profits through mutual cooperation, and are conducive to the other members of the chain. In addition, from the perspective of environmental protection should choose the number of remanufactured products for decision-making variables in the program from the point of view of enterprise’s profits, you should choose remanufactured product price for decision-making variables in the program.3. In the imperfect competition market. In the imperfect information and incomplete information both cases, the paper studied the Competitive relationship between remanufacturer alliance and manufacturers, as well as the evolution of number of enterprises and products. The results show that the bifurcation exists in the evolution path of two types of enterprises, and total number of enterprises on the market and the alliance cost would have an impact on the evolution of enterprises, and incomplete information will be conducive to the spread of remanufacturing technology.

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