Environment, resources and population are the three key problems that today's human society facing. Especially, environment and resources are not only the basic condition to ensure the sustainable development of the social economy but also directly relate to the quality of human life. With this background, more and more countries begin to emphasize environmental requirements from the perspective of the legislative; many countries begin to claim that production-oriented enterprises are responsible for the whole process of Product Life Cycle, especially waste products’ recycling. A closed-loop supply chain (CLSC) focuses on taking back products from customers and recovering added value by reusing the entire product, and/or some of its modules, components, and parts. However, the research about closed-loop supply chain is underdeveloped; one example is that, on some occasions, re-manufacturers are competitors to manufacturers, but Land Rover, the famous vehicle manufacturer, actually worked with its remanufacturer Caterpillar, and became Caterpillar’s seller. A number of cooperation models such as this have not been investigated through systematic research. This application will address the lacuna.
This research will investigate the coordination and competition between and among the members in a CLSC. The first aim is to investigate the coordination and competition between a manufacturer and re-manufacturer in a CLSC. The second aim is to examine the impact of information sharing between the members of CLSC. In this competitive environment, variables like inventory strategy, pricing, policy etc., will be considered. Specific questions that will be addressed include: (1) Re-manufacturer is playing an increasingly important role in the CLSC, so what is the most profitable business model between the manufacturer and the re-manufacturer? (2) As information is one of the key drivers of a supply chain, should a company share information to its partners? If the answer is yes, then to what extent should the information be shared with its partner(s) in CLSC?