Abstract

Remanufacturing widely exists in production activities. Two different game models are involved while considering reverse channels: In Model P, the manufacturer provides new and remanufactured products to two retailers. New products are sold through an online platform, while remanufactured products are sold in offline physical stores in a decentralized scenario. In Model C, the manufacturer provides new and remanufactured units to only one retailer that operates both online and offline channels in a centralized scenario. This research showed that a manufacturer’s profitability and industry profits in Model P were higher than those in Model C from the perspective of economic performance; the sum of the profits of both retailers in Model P was worse than the profits of the retailer in Model C. Moreover, Model P was found to be greener than Model C from the perspective of environmental sustainability. From a social viewpoint, Model P had a higher consumer surplus than Model C; the higher the cost of distributing a remanufactured unit, the more disadvantageous the model to the consumers.