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Managing Two-Echelon Remanufacturing Under Patent Protection

Author

Listed:
  • Cao Xiaogang

    (School of Management, Wuhan Textile University, Wuhan430073, China)

  • Wen Hui

    (School of Science, Hubei University of Technology, Wuhan430068, China)

Abstract

We propose a two-echelon remanufacturing model in the context of two periods in which the factor of patent protection of the original manufacturer is considered. Through the analysis of the Stackelberg game among the supplier, the original manufacturer and the remanufacturer we obtain the equilibrium solutions of the unit patent licensing fee of the original manufacturer, the recycling effort degree of the remanufacturer, the wholesale price of new and remanufactured core components and the retail price of new and remanufactured products in the second period which are all dependent on the retail price of new products in the first period in cases with patent protection and without patent protection. In the numerical study we analyze the impacts of the remanufacturing rate of used products and the retail price of new products in the first period on the equilibrium results of the second period, and make a comparison between the case with patent protection and the case without patent protection.

Suggested Citation

  • Cao Xiaogang & Wen Hui, 2020. "Managing Two-Echelon Remanufacturing Under Patent Protection," Journal of Systems Science and Information, De Gruyter, vol. 8(6), pages 565-577, December.
    • Handle: RePEc:bpj:jossai:v:8:y:2020:i:6:p:565-577:n:5
    DOI: 10.21078/JSSI-2020-565-13
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    References listed on IDEAS

    as
    1. Chen, Jen-Ming & Chang, Chia-I, 2013. "Dynamic pricing for new and remanufactured products in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 146(1), pages 153-160.
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    4. Laurens G. Debo & L. Beril Toktay & Luk N. Van Wassenhove, 2005. "Market Segmentation and Product Technology Selection for Remanufacturable Products," Management Science, INFORMS, vol. 51(8), pages 1193-1205, August.
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