Dynamic co-opetitive approach of a closed loop system with remanufacturing for deteriorating items in e-markets

This study examines the dynamic economics of closed loop supply chains (CLSCs) that incorporate remanufacturing by developing analytical models under both cooperative and competitive policies in electronic markets. Specifically, this investigation presents the multi-variable profit-maximization problem and performs equilibrium analysis using a co-opetitive approach. Additionally, this study undertakes dynamic joint decisions for both brand-new and like-new versions of deteriorating items in a remanufacturing CLSC. The analytical results demonstrate that the dynamic co-opetitive decision depends on the potential size of the market for brand-new products, manufacturing and remanufacturing costs of the original equipment manufacturer, remanufacturing cost of the third-party independent operator, and intensity of competition between different products in the market. (C) 2013 The Society of Manufacturing Engineers. Published by Elsevier Ltd. All rights reserved.