The economics of remanufacturing with competing manufacturers

My thesis analyzes the interactions between two types of competing manufacturers and a single type of retailer as well as the strategic decisions each firm makes for remanufacturing. A chain is established in which the manufacturer produces a product and sells it to the retailer at a wholesale price. The retailer in turn sells the product to the consumer at a retail price. This is known as the forward channel in which both new and remanufactured goods flow from the manufacturers to the retailer to the consumer. In the reverse channel, used goods flow from the consumer back to the manufacturer either directly or indirectly via the retailer. The first type of manufacturer, Mi produces both new goods and remanufactured goods. The second type, known as the remanufacturer, RMi, produces only remanufactured goods. In this way, the two types of manufacturers compete in the remanufactured goods market in the forward channel as well as in the used product market in the reverse channel. Figure 7.1 presents a visual representation of the model. It shows both the forward and reverse flow of goods to and from the manufacturers, the retailer, and the consumer