Competition or Authorization—Manufacturers’ Choice of Remanufacturing Strategies

In the face of cannibalization remanufactured products produced by independent remanufacturers (IRs), original equipment manufacturers (OEMs) can produce themselves to compete with or they authorize IRs cooperate because their seller reputation. This paper studies key factors that influence OEMs’ choice remanufacturing strategies. By establishing three two-stage models and comparing them, thresholds for OEMs choose different strategies were obtained. There is also an interesting finding when authorization fee higher than a certain value, even if product poses competitive threat new product, OEM will help IR improve technology save costs achieve win–win situation. With increase in fees, profits first then decrease, so it not always better charge fees. Whether scenario, improvement output products, which conducive environmental protection.