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| Coordination of Remanufacturing Reverse Supply Chain with Random Quality Based on Option Contract |
| Zhiping Wang, Yujie Li, Caijun Zhao, Zhifang Feng |
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Abstract 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.
DOI: 10.12733/jics20101685
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