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

Jen Ming Chen, Chia I. Chang

Research output: Contribution to journalArticlepeer-review

121 Scopus citations

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.

Original languageEnglish
Pages (from-to)387-400
Number of pages14
JournalTransportation Research Part E: Logistics and Transportation Review
Volume48
Issue number2
DOIs
StatePublished - Mar 2012

Keywords

  • Closed-loop supply chain
  • Cross-channel competition
  • Newsvendor
  • Remanufacturing
  • Reversed logistics

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