Retailer remanufacturing? Pricing decisions for closed-loop supply chain with different remanufacturing models under government subsidies

This paper addresses the dual-channel closed-loop supply chain under government subsidies. By considering whether each supply chain member has remanufacturing capability, it constructs decision models for three different remanufacturing modes: only the manufacturer receives subsidies with the manufacturer conducting remanufacturing (A), both manufacturers and retailers receive subsidies with the manufacturer conducting remanufacturing (B), and both manufacturers and retailers receive subsidies with both engaging in remanufacturing (C). Through numerical analysis, the following key findings are obtained: (1) When the government subsidy ratio is low, Model B is beneficial to retailers; when the subsidy ratio is high, Model C is more advantageous for retailers. (2) The manufacturer's profit reaches the optimal level when the retailer engages in recycling and remanufacturing. (3) For the overall supply chain, Model A is beneficial when the government subsidy ratio is low, while Model C is preferable when the subsidy ratio is high. (4) Government subsidies always have a positive impact on manufacturers, whereas retailers should appropriately adjust their remanufacturing strategies. (5) The retailer's selling price increases correspondingly with the rise in patent fees, while the recycling price exhibits different trends.