Effect Of Capacity Constraints On Choices Of Collecting Channels In Remanufacturing Closed-Loop Supply Chain

In recent years, with the ecological destruction caused by the unreasonable economic growth mode and the consequences of long-term waste of resources increasingly prominent,"cyclic economy" was developed as a means of achieving sustainable development. Remanufacturing deserved the attention of the governments and will get more growth because it had dual effect of the environment protection and economic values. So the study of supply chain entered into the age of closed-loop supply chain.This paper studies the influence of capacity constraints on choices of collecting channels in the closed-loop supply chain with remanufacturing. Considering two situations that new products and remanufacturing products are the same or different, we build three Stackelberg game models to do the decision of collecting channel. We also get the strategy of pricing and analyze the effect of supply chain profits by the cost of over capacity, the differences of consumer demand and the cost of collection efforts. The main conclusions are:(1) When new products and remufacturing are the same and the transfer payments are lower, the manufacture-collecting is the best choice as the profits is highest in this model. With different existing, the optimal choice is the same.(2) Whether new products and remanufacturing products are the same or different, the third party-collecting has significant disadvantage of consumer because of the high retail price.(3) When they are the same, the cost of over capacity and collecting efforts is negatively correlated with the profits of manufacturer and detailer, while the cost saving of remanufacturing is positive correlation with them.(4) When they are different the cost of collecting effects is negatively correlated with the profits. The difference of consumer value between new product and remanufacturing one is negatively correlated too when it is small, while it is opposite.