Study On Remanufacturing And Closed-loop Supply Chain Under Free Riding And Product Warranty

Under the pressure of resource shortage and environmental pollution, recycling has becoming much more important these days. Many countries have made corresponding laws to require the enterprises to recycle and reuse the discarded products. The recycling and remanufacturing of the waste producet is very important for the world. As a new kind of management style to the economic development and coordinate environment, the close-loop supply chain of remanufacturing has been given close attention by the government, enterprises and schloars. The consumers' free-ridding behavior is inevitable with the hybrid sales and the competition between the manufacture and the remanufacture is getting more and more intense. The paper mainly studies the close-loop supply chain from two aspects: one is how the free-riding influence the hybrid close-loop supply chain, the other is the analysis of the product warranty' impact on the competiton between the manufacturer and the remanufacturer.Chapter 3 establishes a model of hybrid sales in a close-loop supply chain, and compares their equilibrium results. The main results of the model are as follows:the take-back rate decided by the manufacturer model is the same to the centralized decision,the profit of supply chain system under centralized decision is bigger than decentralized decision, besides the manufacturer's direct selling price is always same to the wholesale price and the free riding can lower the retailer's service level, thus improving the manufacturer's direct sales. In chapter 4, through the analysis of the product warranty, we find that, if the manufacturer provides the product warranty, the new products' price and sales are improved, and the remanufacturer's sales are promoted as well, meanwhile, the manufacturer's profit and the total profit are both improved. However, when the recovery rate is high, the remanufacturer may choose to provide its product warranty, it does not have any effect with the manufacturer, but can improve the remanufactured product's price, the remanufacturer's profit and the total profit. At the end of the paper, further conclusions and suggestions are made for future study in this field.