Third-party Recycling and Pricing Strategy in a Third-party-leading Two-stage Remanufacturing Supply Chain

In a third-party-leading two-stage remanufacturing supply chain, third-party recycler disassembles the recycled product or resell the effective recycled product after simple process. In the electronics recycling and remanufacturing industry, we consider a third-party-leading two-stage remanufacturing supply chain consisting of one original equipment manufacturer, one supplier, and one third-party recycler, and study the third-party recycler's recycling and pricing strategy when the third-party recycler participates in reselling the effective recycled product. This study focuses on how effective product recovery ratio impact the third-party's decision on participating in reselling by modeling the game between OEM, supplier and third-party recycler, and how effective product recovery ratio impact the OEM's and supplier's decisions and benefits. And we found that: a higher effective product recovery ratio brings higher benefits to the third-party recycler, and the third-party recycler participating in reselling. In a high effective product recovery ratio, the profit of OEM and supplier is declined.