#2 – Distributor-Remanufacturing Model for Closed-Loop Supply Chain: Basing on Stackelberg Game Model

Ruiqi Xu, Kai Wang, and Wei Yan.
Distributor-Remanufacturing Model for Closed-Loop Supply Chain: Basing on Stackelberg Game Model. Dynamic Systems and Applications 29 (2020) No. 6, 2177 – 2199

https://doi.org/10.46719/dsa20202962

ABSTRACT. Basing on Stackelberg game mathematical model, this paper firstly studies the model where the distributor engages in remanufacturing (d-model), in single- and two- period, respectively, and compares it with the model where the manufacturer engages in remanufacturing (m-model). The results of optimization and comparison show that d-model is helpful to the consumer’s welfare increasing and the remanufacturing developing; d-model is advantage to the distributor, m-model is advantage to the manufacturer, the total profit in d-model is higher than m-model; the manufacturer is willing to choose d-model as long as it transfers some profits from the distributor to itself.

Keywords: Distributor; Remanufacturing Model; Stackelberg game; Consumer’s acceptance for remanufactured products; comparison.