Coordination of Remanufacturing Reverse Supply Chain with Random Quality Based on Option Contract

摘要

To improve the cooperative relations between the remanufacturer and the retailer in a decentralized remanufacturing system with random quality level of used products, a profit coordination model is proposed by adopting both whole-price-ordering and option contract, and is compared with the optimal decisions under the news-vendor model. The results of numerical examples are presented to illustrate the validity of option contract on profit coordination. The effects of the uncertainties of quality level and demand on decisions are also studied through numerical examples.