Dynamic Competition in Supply Chains with Downstream Remanufacturing Capacity

Environmental pollution and the diminishing availability of natural resources, as well as pressure from communities and customers impose environmentalfriendly strategies on the part of manufacturers, as well as other public and private organisations, regarding the environmental impact of their production, delivery processes, and the final disposal of their products. Clearly, these strategies are meaningful and sustainable only if they are in full accordance with business strategies. Recycling and remanufacturing strategies are towards this direction, and are in compliance with national and international environmental legislation. For example, there is legislation in force in most EU countries that attributes extended producer responsibility for the full product life cycle. In this line, in 2000, the European Parliament issued a directive requiring its member countries to institute an Extended Producer Responsibility (EPR) program for end-of-life vehicles. EPR is defined as „a policy principle to promote total life cycle environmental improvements of product systems by extending the responsibilities of the manufacturer of the product to various parts involved in the entire life cycle of the product, and especially to the take-back, recycling and final disposal of the product“.

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