Remanufacturing of electronic products in bonded port area across home and foreign markets

Purpose – This study proposes a process for remanufacturing waste electrical and electronic equipment, and exporting part of the remanufactured products, which are processed in bonded port areas, to less developed countries by using a closed-loop supply chain (CLSC). The purpose of this paper is to verify the profitability of remanufacturing and to find conditions under which exporting remanufactured products can increase and maximize the home manufacturer’s total profit while performing his environmental responsibility. Design/methodology/approach – The authors use the CLSC approach to construct the model, which involves two different markets where a Stackelberg game exists. The study derives an equilibrium under which an optimal quantity for exporting increases and maximizes the home manufacturer’s profits. Findings – The authors discuss the influences of seven factors, and three are determinant parameters on whether the home manufacturer should export its remanufactured products: the privileges of the bonded port area, the home market consumers’ green awareness, and the degree of competence in products in the foreign market. If the market conditions at home and abroad meet the requirements of these three determinant parameters, entering the foreign market can always help the home manufacturer make more profits regardless of whether its home market increases or decreases, how many used products can be collected, and whether the foreign local manufacturer is technically competitive. Originality/value – The authors expand previous studies on CLSC by considering two different markets that allow the home manufacturer to either sell remanufactured products to the home market or export to the foreign market.