Remanufacturing Mode Selection regarding Technology Development

Table 1

Notations.

,	Total demand/quantities for new products and remanufactured products
,	Unit prices of the new and remanufactured products
,	Profits of OEM and IR
TEI	Abbreviation of the total environmental impact
,	Unit production cost of new products and remanufactured products
,	Net utility of a consumer buying the new product and remanufactured product
U	Consumer’s willingness-to-pay for new products without quality improvement
	Controlling parameter
	Quality level of OEM, and for with and without quality improvement
	Valuation discount for remanufactured products,
	Remanufacturing cost advantage owing to the savings of raw materials, i.e., ,
	The scale parameter of total investment in quality improvement
r	Unit royalty fee paid by the IR to the OEM for the production and remanufactured products
	IR shares a portion of the OEM’s technology development cost,
	The output adjustment parameters of new and remanufactured products under mechanism of licensing royalty
	The output adjustment parameters of new and remanufactured products under mechanism of joint R&D