Expand or not? Trade-offs of the remanufacturer on recycling channels

Abstract

The integration of online trading has emerged as a crucial driver of operational efficiency in the reverse supply chain. This study expands the recycling model to include three distinct scenarios: basic-offline recycling (BR), single-platform recycling (SR), and dual-platform recycling (DR). The research delves into the implications of varying platform numbers, profit-sharing contracts, consumer recycling preferences, and recycling price adjustment speeds on supply chain stability within a multi-period decision-making framework. Findings reveal that the SR model is not always yield higher profits for remanufacturers through lower revenue allocation proportions to platforms, in stark contrast to the DR model. Furthermore, rapid decision adjustments do not consistently enhance the stability of the recycling system across multiple decision cycles. Remanufacturers' expansion strategies are significantly impacted by the costs associated with acquiring e-waste from individual recyclers. Importantly, an excess of platforms does not always result in favorable outcomes. Conversely, the SR model proves superior to the DR model in practical contexts that may arise. These insights offer valuable guidance to remanufacturers seeking to develop viable expansion strategies that foster mutually beneficial relationships among individual recyclers, remanufacturers, and platforms.