Entering the Remanufacturing Business When There is Already One Actor Making Remanufacturing

Mehmet Alegöz, Department of Industrial Engineering, Eskisehir Technical University

Abstract

Remanufacturing has been receiving a growing attention in both academia and industry due to its economic and environmental benefits. Although most of the studies in the existing literature assume that there is only one remanufacturer in the system at a time, real-life applications reveal that different actors may consider entering the remanufacturing business simultaneously. Motivating from this fact, in this study, we focus on three remanufacturing systems as only the manufacturer remanufactures (Case 1), only the retailer remanufactures (Case 2) and both the manufacturer and the retailer simultaneously remanufacture (Case 3) the used products under the carbon tax policy. Stackelberg Game models are proposed for each of these cases and the performances of the actors are compared. Comparisons bring various managerial insights regarding the effect of simultaneous remanufacturing decisions of the actors. Particularly, we observe that the manufacturer, in most of the instances, has no economic incentive to enter the remanufacturing business when the retailer already makes remanufacturing. However, different from the manufacturer, the retailer, in most of the instances, has a substantial economic incentive to enter the remanufacturing business when the manufacturer makes remanufacturing.

Short Bio

Mehmet Alegoz currently works as an Assistant Professor of Sustainable Operations & Supply Chain Management in the Department of Industrial Engineering at Eskisehir Technical University. His research interests lie in the area of sustainable supply chains ranging from emission policies to coordination and competition. He mainly uses dynamic programming, stochastic programming and game theory to develop solution approaches for the problems in this area. Mehmet's work so far appeared in respected journals such as European Journal of Operational Research, Sustainable Production and Consumption, and Computers & Industrial Engineering, among many others.

Venue

Friday, April 8, 2022, 4.00 pm - Zoom Meeting