Research On Remanufacturing Strategy Of Close-loop Supply Chain Considering The Protection Of Intellectual Property

Under pressure to environmental protection and resources, recycling of waste product is more and more aroused people’s concern. With the development of remanufacturing industry and technology, in reality, in addition to the common practice of manufacturers and third-party manufacturers for recycling and then remanufacturing, there has been a phenomenon of dealer remanufacturing. The dealers not only sell new products, but also sell the products which are recycled and remanufactured. At the same time, the protection of intellectual property rights in the process of remanufacturing in the word is more and more valued by the government and enterprises, especially in the field of large mechanical core components. Based on this background, this paper studies the closed loop supply chain model based on different remanufacturing subject under the protection of intellectual property.In this paper, we will describe the demand for new and remanufactured products from the respective of the different between the new product and the remanufacturing product. Begin with a discussion of the closed- loop supply chain optimal remanufacturing under centralized decision situation, and then we study three strategies of remanufacturing: the strategy of the manufacturers remanufacturing(MR strategy), the strategy of the dealers remanufacturing( RR strategy), the strategy of the third-party remanufacturing(TR strategy) under decentralized decision situation. And through the revenue-and-expenses-sharing contract to coordinate the closed- loop supply chain. By comparison and analysis, as manufacturers can get most of the profits through patent licensing fees which generated by remanufacturing, resulting in that the profits of manufacturer and dealer have not been changed. And it can be concluded that the above two strategies are superior to each other under the profit of TR strategy. As intellectual property owners, manufacturers tend to remanufacture by themselves or authorize the dealers to remanufacture, so is the dealers’ decision. In addition, it is also found that revenue-and-expenses-sharing contract can make the effectiveness of the closed- loop supply chain system under the MR strategy and the RR strategy achieve the target of centralized decision situation, but the TR strategy can not be coordinated. Secondly, based on the above research and conclusion, this paper discusses the impact of government subsidies on the closed- loop supply chain which remanufactured by the third-party remanufacturers. The results show that the decisions which manufacturers and dealers make depend on the government subsidies for each unit of remanufacturing products. The third party manufacturers are always a positive attitude towards remanufacturing by themselves. Finally, the numerical example and the simulation results verify the conclusions obtained by the model, and make a more comprehensive and detailed analysis.