This paper introduces external competitive factors to remanufacturing system with three products. In internal and external competitive environment, the equilibrium solution is given. The result shows that the remanufacturing strategy of manufacturers is not enough to prevent competitor's entry,
and the external competition is such that the OEM remanufacturing strategy is more difficult. Consequently, OEM is forced to choose the principal-agent cooperation mechanism. The transfer payment is dependent on economies of scale, opportunity cost and earning ability of competitor.
LI Bangyi ,JIANG Jinde, YANG Li.
RESEARCH ON OUTSIDE COMPETITIVE EFFECT AND PRINCIPAL-AGENT MECHANISM OF REMANUFACTURING SYSTEM. Journal of Systems Science and Mathematical Sciences, 2011, 31(11): 1423-1429 https://doi.org/10.12341/jssms11738