Supply Chain Coordination For Remanufacture Technology Selection In Electricity Industry

With the further implement of China Electricity System Reform and thenew policy on disposal of used electricity assets approved by State Grid, theelectricity reverse supply chain will inevitably upgrade the disposaltechnology. This essay deals with optimal technology choice issues ofdisassembling and remanufacturing as well as the coordination problemsfollowed on the basis of a real case. First, in the two-echelon reverse supplychain consisted of an electricity company and a remanufacture company, theoptimal technology policies of each party are analyzed according to currentfeatures of electricity industry, i.e. the simple disassembling or preciseremanufacturing. With the different optimal technology policies ofremanufacturer and reverse supply chain, the possible incoordination isdiscussed. Afterwards, in order to promote remanufacture technology fromthe altitude of supply chain strategy, a feasible coordination policy ofelectricity company offering cost subsidies to remanufacturer is analyzed, thus a win-win situation is achieved. Further onwards, reality factorsincluding changing supply and learning effect are taken into consideration,and their influences on technology choices and reverse supply chaincoordination are discussed.Chapter3starts with constant supply condition, after the analysis ofremanufacture technology choices of electricity reverse supply chain undercentralized/decentralized decision, the supply chain incoordination is found,and the causes are discussed. A coordination policy to offer remanufacturercost subsidies is provided to bond the interest of remanufacturer and thewhole reverse supply chain. Furthermore, referring to the macro increasetrend of China electricity investments, the supply amount is extended totime-varying condition. When supply amount of used assets increases withtime, the time-varying supply’s influences on remanufacture technologychoices, reverse supply chain incoordination and coordination policy isfurther studied. Numerical samples are provided to prove the existence ofreverse supply chain incoordination and the feasibility of coordination policy.In Chapter4, the learning effect in used electricity assets disposals andits influences on reverse supply chain incoordination and coordination policyis discussed. When the reverse supply chain and remanufacturer anticipatethat, the variable cost of precise remanufacture technology can be decreased sharply from learning effect, the precise remanufacture technology will bepromoted. On the contrast, if the variable cost decrease is comparativelysmall, the precise remanufacture technology will be obstructed. Meanwhile,learning effect also affects the cost subsidy rate in the coordination policy. Inthe last, the real case in SH power reverse supply chain is introduced andthoroughly analyzed to prove the realistic contributions of this essay.