Channel Selection of Closed-Loop Supply Chain for Scrapped Agricultural Machines Remanufacturing

Abstract

Along with economic development and technological innovation, rapid expansion of agricultural machinery has sparked widespread concern. In particular, the superiority of scrapped agricultural machinery recycling and remanufacturing in improving environmental sustainability, economic benefits, and carbon emission reduction has garnered public attention. Based on this reality, this study constructs models for five different agricultural machinery recycling channels according to different actors involved in recovery, dismantling, and remanufacturing. Each model’s equilibrium is determined by mathematical deduction. The applicable condition of each model and the influence of multiple factors are analyzed. The results indicate the following: (i) no single recycling channel is definitely superior to others, and different channels have their own applicable conditions that are influenced by transfer payments, supply chain cooperation, recycling prices, and supply and demand; (ii) cooperative scenarios are more conducive to attracting third-party enterprises to participate to increase supply chain revenue; (iii) rise in recovery and remanufacturing prices may lead to divergence among supply chain parties on channel selection; and (iv) oversupply requires government subsidies to maintain recycling and remanufacturing.