Recycling Strategies in a Collector-Led Remanufacturing Supply Chain under Blockchain and Uncertain Demand

Abstract

Remanufacturing has been regarded as a key to the sustainable development of enterprises. However, collection strategies affect the remanufacturing and recycling of used products. Blockchain can ensure the authenticity of disclosed information and improve the consumer’s trust in remanufactured products. Inspired by this, this paper develops a game-theoretic model to examine the selection of different recycling strategies in the remanufacturing supply chain considering blockchain adoption and uncertain demand. Incumbent collector 1 provides the manufacturer with used product 1 for remanufacturing product 1. For product 2, the manufacturer has two different collection strategies: in-house collection by the manufacturer or external collection by collector 2. The collectors act as the channel leader, and the manufacturer, who has private demand information, is the follower. Results show that collectors are incentivized to participate in the blockchain. If there is no blockchain, collector 1 prefers external collection. In the case of blockchain, the manufacturer prefers external collection when the demand variance is low. The manufacturer’s decision on the in-house collection and external collection depends on the coefficient of collection investment costs.

Sustainable Supply Chains in Industrial Engineering and Management

“…Yang et al [11] constructed a duopoly competition game model for channel competition between offline retailers and online retailers, studied the optimal pricing decisions in different scenarios, revealed the conditions for online retailers to provide return strategies and return insurance strategies, and provided management insights for online retailers.…”

“…Yang et al [11] develop a game-theoretic model to examine the selection of different recycling strategies in the remanufacturing supply chain considering blockchain adoption and uncertain demand. Results show that the coefficient of collection investment costs determines the collection method and the incentive for collectors to participate in the blockchain.…”

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