Abstract:

Incentive mechanisms for the reverse supply chain were studied through the view of the motivation between remanufacturing and callback behaviors. Considering the randomness of recycle response time, variables of penalty cost and bonus were introduced. The way to realize the minimum cost and get expected optimal delivery time and probability by penalty policy and incentive contract for manufacturvs was forecasted and case analysis illuminated the effect that inventory cost parameters impact on contract decision.

Key words: remanufacturing; reverse supply chain; just in time;contract incentives