<p><?tk 4?>Considering remanufactured products and prototype new products that are in or not in the same market, this paper aims to study manufacturers’ production decisions for competitive (CR) and non-competitive (NCR) remanufactured products and investigate new relationships between remanufactured products and prototype new products. We develop a game-theoretic model, which considers a dual-market with a potential competitor scenario to reveal the manufacturer’s remanufacturing strategic choice path and identifies how the new market’s potential competitor affects the manufacturer’s decisions. Moreover, consumer’s utility theory is used to describe consumers’ perception of different remanufactured products to derive product demands and examine the demand cannibalization and coordination effects of remanufactured products. The results provide conditions for the manufacturer to engage in the single CR activity, the single NCR activity or both the CR and NCR activities. Moreover, we find that the NCR mode is not strictly dominant. If the competitor’s production cost is low, the manufacturer should not engage in the NCR activity even if the NCR product’s cost is zero. Furthermore, in addition to the demand cannibalizing effect of remanufactured products, we find the demand coordination effect and explore its impact on the manufacturer’s production decisions.</p>

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Production decisions for competitive and non-competitive remanufactured products

  • Limin Zhang,
  • Kai Li,
  • Hong Fu,
  • Nenggui Zhao,
  • Bohai Liu

摘要

Considering remanufactured products and prototype new products that are in or not in the same market, this paper aims to study manufacturers’ production decisions for competitive (CR) and non-competitive (NCR) remanufactured products and investigate new relationships between remanufactured products and prototype new products. We develop a game-theoretic model, which considers a dual-market with a potential competitor scenario to reveal the manufacturer’s remanufacturing strategic choice path and identifies how the new market’s potential competitor affects the manufacturer’s decisions. Moreover, consumer’s utility theory is used to describe consumers’ perception of different remanufactured products to derive product demands and examine the demand cannibalization and coordination effects of remanufactured products. The results provide conditions for the manufacturer to engage in the single CR activity, the single NCR activity or both the CR and NCR activities. Moreover, we find that the NCR mode is not strictly dominant. If the competitor’s production cost is low, the manufacturer should not engage in the NCR activity even if the NCR product’s cost is zero. Furthermore, in addition to the demand cannibalizing effect of remanufactured products, we find the demand coordination effect and explore its impact on the manufacturer’s production decisions.