Remanufacturing Strategies for a Closed-Loop Supply Chain Considering Brand Power and Carbon Regulation

This paper aims to investigate the impact of the cap-and-trade system on remanufacturing strategies in a competitive market, taking into account market power related to brand image. Therefore, we characterize a closed-loop supply chain that consists of two firms (high-end and low-end) and a third party, such that only the high-end firm or third party can perform remanufacturing. The optimal solution for each scenario measures the economic and environmental performances of the closed-loop supply chain The findings reveal that the acceptable regions of remanufacturing third-party remanufacturing are inferior to high-end remanufacturing for high-end products. However, third-party remanufacturing is more eco-friendly than internal remanufacturing under a smaller carbon quota. The study provides significant managerial insights for businesses interested in remanufacturing. It can also serve as a basis for policymakers to implement carbon regulations. Copyright (C) 2022 The Authors.