Journal of Systems Engineering

remanufacture; supply chain game; advertising; product quality guarantee insurance; product claims

Based on a competitive two-supply chain peration system with manufacturing and remaufacturing processes, this study explores the effect of remanufacturer's new marketing strategy selection, i.e., adopting the "insurance strategy" instead of the “advertising strategy”, on supply chain members' optimal peoduction decisions. According to the consumer behavior  research, it formulates the demand functions of different strategies and analyzes the conditions that the “insurance strategy”could be applied and its corresponding optimal production decisions. Meanwhile, by using a numerical simulation, it displays the differences of related stakeholders' benefits under two different strategies. Besides, this study preliminarily discusses the relationship  between the production cycle and insurance cycle and the influence of insurance companies' participation on remanufacturing supply chain benefits. Results show that adopting the "insurance strategy" is reasonable under certain conditions and can improve both the economic interests and comprehensive benefits.

Shuiye Niu*,Yongjian Li

Management Science

Management Science and Engineering

J

32

5

674-685

2.114

No

2017-04