Quantity and quality decisions with heterogeneous return condition in a closed-loop supply chain

• Main Authors: Yi-Jhe Kao, 高義哲
• Other Authors: Cheng-Han Wu
• Format: Others
• Language: zh-TW
• Published: 2015
• Online Access: http://ndltd.ncl.edu.tw/handle/23464288239610366137

碩士 === 國立雲林科技大學 === 工業工程與管理系 === 103 === Remanufacturing is a growing segment of the manufacturing industry, leading independent remanufacturers (IRs) to enter the markets and compete with original equipment manufacturers (OEMs). Consumer purchasing behavior is commonly sensitive to product quality that is also dependent to IRs’ recovery costs. Hence, OEMs may use product quality as a competing strategy to deter IRs. In this study, we investigate the competitive interaction in a closed-loop supply chain that including an OEM and a IR. The OEM first determines its product quality, and then both the OEM and IR choose their production quantities. We derive the equilibrium choices of the OEM’s quality level and the produce quantities in three scenarios. We analyze the equilibrium results for managerial insights. Finally, we show that (1) the increase of IR’s remanufacturing cost encourages the OEM to choose a higher quality level. (2) As the OEM’s variable cost related to quality increases, the OEM decreases the quantity of new products, and however, the IR increases the quantity of remanufactured products for enlarging the market share. (3) Moreover, under the coordination, it is beneficial to consumers, the OEM and the IR.