The production and pricing strategy of the two-echelon remanufacturing supply chain with government subsidy under patent protection

Purpose In this paper, the authors study production and pricing decisions of a remanufacturing supply chain composed supplier, an assembler remanufacturer, in which components requires patent licensing from supplier. Design/methodology/approach The consider three different models with government subsidy for remanufacturing: (1) no subsidies; (2) subsidizes behavior supplier (3) remanufacturer use Stackelberg game model to solve analyze equilibrium wholesale prices outputs new remanufactured products under modes. Findings results show that two kinds decrease unit fee subsidy, quantity modes is obviously higher than products. Originality/value Finally through numerical simulation, it found profits manufacturer increase monotonously relation while optimal profit tends first then increase.