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The co-opetitive strategy of a closed-loop supply chain with remanufacturing

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  • Chen, Jen-Ming
  • Chang, Chia-I

Abstract

This paper deals with a strategic issue of closed-loop supply chains with remanufacturing by developing analytic models under cooperative and competitive settings. The primary goal behind analytic formulation is to investigate under what conditions an original equipment manufacturer (OEM) may take a cooperative approach by participating in remanufacturing. In contrast, the OEM may take a competitive approach by letting the third-party firm remanufacture the returned cores and remarket in the secondary market that competes with the new product. Our analysis reveals that the strategic decision depends critically on the costs of remanufacturing and the competition intensity between the two versions.

Suggested Citation

  • Chen, Jen-Ming & Chang, Chia-I, 2012. "The co-opetitive strategy of a closed-loop supply chain with remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(2), pages 387-400.
  • Handle: RePEc:eee:transe:v:48:y:2012:i:2:p:387-400
    DOI: 10.1016/j.tre.2011.10.001
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