Remanufacturing Modes Selection in Competitive Closed-Loop Supply Chains

In the context of green economy, Closed-Loop Supply Chain (CLSC) competition is intensifying. This study aims to help companies operating in green supply chains determine optimal remanufacturing strategies when competing with other firms. We examine the decision-making problem of CLSCs in competitive environments facing multiple remanufacturing mode options. The research constructs a Prisoner’s dilemma model for dual CLSCs, where each chain has three strategic choices: independent remanufacturing, outsourced remanufacturing, and authorized remanufacturing. Employing Stackelberg game models, Nash equilibrium analysis, and numerical simulations, this study explores how remanufactured product unit saving costs affect remanufacturing mode decisions concerning competitive intensity and discount policies. The study then draws the following conclusions: (1) CLSCs prefer outsourced and authorized remanufacturing in competitive scenarios; (2) Remanufactured product discounting significantly influences CLSC remanufacturing decisions; (3) Competitors typically adopt conservative strategies by aligning decisions with rivals. These results provide practical guidance for CLSCs selecting remanufacturing approaches when facing substitute competition, contributing to more sustainable and competitive supply chain operations.