Abstract Reverse supply chain is one of the important parts of the industry of return and remanufacturing industry, aiming to resolve the two problems of resource scarcity and environment pollution. By studying on the unreasonable structure of Reverse supply chain in China, we find the main reasons are the traits of information asymmetry, product heterogeneity, environment externality and asset specificity. Based on the supply chain traits, the equilibrium models of perfect state and industry traits state are built, and we find more illegal remanufacturer with low-level remanufacturing is the result of suboptimal equilibrium. Then, in a logical order of front end, middle end and back end of reverse supply chain, we propose the signal screening and transmission mechanism, prepostponement mechanism, punishment mechanism and cooperation mechanism to encourage the legal and environmental return and remanufacturing. Finally, we put forward the conclusion and suggestions for future research.
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Received: 03 June 2013
Published: 15 September 2013
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Corresponding Authors:
LV Jun
E-mail: jlv@dbm.ecnu.edu.cn
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