Dynamic co-opetitive approach of a closed loop system with remanufacturing for deteriorating items in e-markets

• This study examines the dynamic co-opetitive remanufacturing strategy in e-markets.
• A price-dependent and time-variant demand function with substitution is considered.
• The multi-variable profit-maximization problem is formulated for deteriorating goods.
• This study makes dynamic joint pricing, scheduling and lot-sizing decisions.
• The strategic decision depends on the market size, substitutability and costs.

This study examines the dynamic economics of closed loop supply chains (CLSCs) that incorporate remanufacturing by developing analytical models under both cooperative and competitive policies in electronic markets. Specifically, this investigation presents the multi-variable profit-maximization problem and performs equilibrium analysis using a co-opetitive approach. Additionally, this study undertakes dynamic joint decisions for both brand-new and like-new versions of deteriorating items in a remanufacturing CLSC. The analytical results demonstrate that the dynamic co-opetitive decision depends on the potential size of the market for brand-new products, manufacturing and remanufacturing costs of the original equipment manufacturer, remanufacturing cost of the third-party independent operator, and intensity of competition between different products in the market.