Production and Operations Management 2001

COMPETITION IN REMANUFACTURING

Pranab Majumder^1,2; Harry Groenevelt^3,4,5,6,7,1

¹ University of Rochester · ² Indian Institute of Management Calcutta · ³ Optym (United States) · ⁴ Culture Resource · ⁵ Research Management (Norway) · ⁶ Quality Research · ⁷ Electronic Systems Design (Malta)

Abstract

We present a two‐period model of remanufacturing in the face of competition. In our model, an original equipment manufacturer (OEM) competes with a local remanufacturer (L) under many reverse logistics configurations for the returned items. After establishing the Nash Equilibrium in the second period sub‐game, we use numerical experiments for comparative statics. OEM wants to increase L'S remanufacturing cost. Surprisingly, while L competes in the sales market, she has incentives to reduce oem's remanufacturing cost. A social planner who wants to increase remanufacturing can give incentives to the OEM to increase the fraction available for remanufacturing, or reduce his remanufacturing costs.

DOI

10.1111/j.1937-5956.2001.tb00074.x

Sources

openalex

Cite

APA 7 MLA 9 Chicago (author–date) Harvard Elsevier Harvard (JFE, JBF…) The Accounting Review Academy of Management American Marketing Association INFORMS (Management Science) Copy citation Copied ✓