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Indexed by:期刊论文

Date of Publication:2016-03-01

Journal:TRANSPORTATION RESEARCH PART E-LOGISTICS AND TRANSPORTATION REVIEW

Included Journals:SCIE、SSCI、Scopus

Volume:87

Page Number:1-19

ISSN No.:1366-5545

Key Words:Remanufacturing; Third-party remanufacturer; Outsourcing remanufacturing; Authorization; Consumer surplus; Social welfare; Environment impact

Abstract:Many original equipment manufacturers (OEMs) allow third-party remanufacturers (3PRs) to perform remanufacturing operations of branded or patented products - through either outsourcing or authorization. This study compares these two modes by modeling the game between the OEM and the 3PR on equilibrium quantities, prices, and profits. The results suggest that when consumers perceive the remanufactured products with a low value, the 3PR prefers the authorization approach; otherwise the 3PR prefers the outsourcing approach. However, in both scenarios, the OEM obtains higher profit through outsourcing than through authorization. Our further analysis compares two modes' impacts on consumer surplus, social welfare, and environment. (C) 2015 Elsevier Ltd. All rights reserved.