Distribution Channel and Remanufacturing Strategy Selection

Table 1

Table of key notation.

Notation	Description
Superscripts
	Type of remanufacturing strategy, (outsourcing remanufacturing operation to a 3PR) and (licensing remanufacturing business to a 3PR)
	Type of distribution channel structure, (direct sell the new and remanufactured products), (direct sell the new products and indirect sell the remanufactured products), (indirect sell the new products and direct sell the remanufactured products), and (indirect sell the new and remanufactured products)
Subscripts
	Type of product, (new product) and (remanufactured product)
	Type of player, (original equipment manufacturer), (third-party remanufacturer), and (retailer)
Parameters
	Manufacturing cost per unit
	Remanufacturing cost per unit
	Consumer willingness-to-pay for a product
	WTP discount factor for a remanufactured product
	Unit environmental impact from a product
Decision variables
	Wholesale price of product in strategy and channel structure
	Retail price of product in strategy and channel structure
	Outsourcing fee for remanufacturing operation
	License fee for remanufacturing business
Auxiliary variables
	Product demand for product in strategy and channel structure
	Consumer surplus in strategy and channel structure
	Social welfare in strategy and channel structure
	Total environmental impact in strategy and channel structure
Objective function values
	OEM’s profit in strategy and channel structure
	3PR’s profit in strategy and channel structure
	Retailer’s profit in strategy and channel structure