Modeling and Analysis of Recycling and Remanufacturing Systems by Using Repeated Game Model

Abstract

Abstract: Recycling and remanufacturing are effective way for rational use of the resources and environmental protection. To make recycling and remanufacturing possible, the recycling and remanufacturing system should be profitable. A repeated game model is developed to describe such a system. By using this model, one can analyze the relationship between the marginal profit and the recycling price which is the decision variable in the model. With this model, numerical simulation is performed and results show that: 1) when the price is adjusted for the profit, the larger the adjusting range of the price is, the more complex the recycling market chaotic state is; 2) when the price of the remanufactured products exceeds a critical value the recycling market enters a chaotic state; and 3) the recycling market is sensitive to the initial recycling price, a minor change of initial recycling price can cause a large fluctuation of the recycling market. These results can be used as the guideline for profit maximization in recycling and remanufacturing.

Key words: repeated game theory, remanufacturing, chaos

Guo Yuehong1,2， Ma Junhai1,2， Wang Guanhui1. Modeling and Analysis of Recycling and Remanufacturing Systems by Using Repeated Game Model[J]. Industrial Engineering Journal , 2011, 14(5): 66-70.

References

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