The"trade-in(TI)"program promotes the sales of new products and recycling of the used products.Moreover,the"trade-old-for-remanufactured(TOFR)"program guides the enterprise to earn more through remanufacturing.In this paper,a closed-loop supply chain game model of the interaction between TI and TOFR programs is set up.We analyze the impact of TOFR strategy implemented by the manufacturer or retailer on supply chain performance on the basis of TI strategy implemented by the retailer.The main findings are:(i)When the production cost of remanufactured products is relatively high,the retailer implements the TOFR program which makes the consumer market of TOFR always have a strong cannibalization effect on TI;when the production cost of remanufactured products is relatively low and the consumers'acceptance is relatively high,the manufacturer implements TOFR program which could make the consumer market of TOFR have a strong cannibalization effect on TI.(ii)The retailer implements the TOFR program under which the supply chain members can obtain higher profits and realize a"win-win"outcome if the acceptance of consumer for the remanufactured and the unit production cost of new product are relatively high.(iii)The retailer who implements the TOFR program could earn more by expanding the market overall demand,and the manufacturer who implements the TOFR program causes"channel+price"competition for the retailer.Thus,the retailer will lower the retail price of the new products and the manufacturers will gain higher profits by"free-riding".
"trade-in""trade-old-for-remanufactured"Closed-loop Supply ChainGame Theory
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