How Does Retailer-Oriented Remanufacturing Affect the OEM’s Quality Choice?

We consider that a supply chain consists of an original equipment manufacturer (OEM) and retailer. analyze how the retailer’s remanufacturing decision affects new products’ qualities for OEM. use game theory approach to investigate interactions between OEM retailer with or without operation. find motivation develop industry depends on profitability remanufactured products OEM’s deterring strategy. When operation profit margin is low, voluntarily gives up remanufacturing; when this moderate, induces give by improving quality product; sufficiently high, cannot prevent from developing remanufacturing. The as well their threat decrease because improves induce remanufacturing, at expense its own profit. explicitly characterize process preventing accepting industry, changes in supply-chain members’ operating decisions profits process. Finally, using MATLAB numerical analysis, we also found development always benefits whole chain, consumer surplus, social welfare. Furthermore, not good environment. This only environment environmental impacts EOL stage are larger than total every life cycle.