Title: Internal supply-chain competition in remanufacturing: operations strategies, performance and environmental effects

Authors: George Papachristos; Emmanuel D. Adamides

Addresses: Faculty of Technology, Policy and Management, Policy Analysis Section, Delft University of Technology, Postbus 5, 2600 AA Delft, The Netherlands ' Section of Management and Organisational Studies, Department of Mechanical Engineering and Aeronautics, University of Patras, Rion 26500, Greece

Abstract: This paper investigates the competitive and environmental effects of different operations strategies of original equipment manufacturers (OEMs) and semi-independent remanufacturers, which simultaneously cooperate and compete in different stages of a closed-loop supply chain. In particular, a co-opetitive situation, in which remanufacturing is undertaken only by retailers while the OEMs' role is restricted to recycling is considered. After adopting a resource-based perspective of competition, investigations are accomplished using system dynamics simulation modelling. The results of simulations indicate that, in the long run, OEMs, regardless of the operation strategy they adopt, are unable to (re)capture the market gained by the remanufacturers. However, some of these strategies contribute to the improvement of the environmental performance of the entire supply chain.

Keywords: closed-loop supply chains; remanufacturing; operations strategies; resource based view; RBV; system dynamics; supply chain management; SCM; internal supply chains; supply chain competition; supply chain cooperation; performance evaluation; environmental effects; original equipment manufacturers; OEMs; semi-independent remanufacturers; system simulation; modelling; environmental performance; green SCM; supply chain management; GSCM.

DOI: 10.1504/IJLSM.2014.064658

International Journal of Logistics Systems and Management, 2014 Vol.19 No.2, pp.187 - 211

Received: 06 May 2013
Accepted: 10 Jul 2013

Published online: 13 Sep 2014 *

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