The coordination problem of supply chain with differentiated new and remanufactured product

The importance of remanufacturing used products into new ones has been widely recognized in the literature and in practice. In this paper, the coordination problem of supply chain with differentiated new and remanufactured product, composed of a single manufacturer and a single retailer, was considered. The optimal decisions of the manufacturer were got under different conditions. Itpsilas found that the unit revenue of the manufacturer is twice that of the retailer. Correspondingly, the profit of the manufacturer is twice that of the retailer. While the supply chain couldn´t be coordinated with a single wholesale contract, a quantity-discount contract based on the order quantity of new and remanufactured product is proposed to maximize the profit of the whole system.