Optimization research on remanufacturer's financing strategy selection in cooperative remanufacturing mode

Aiming at the cooperative remanufacturing mode in the closed loop supply chain which led by the remanufacturer, the equilibrium solution and the optimal financing strategy of the remanufacturer are studied in the practical example of the remanufacturer facing capital shortage. Firstly, the cooperative decision models were constructed under the sufficient capital scenario, it is easy to find the critical vale of the initial capital for the remanufacturer choosing the debt financing strategy. Secondly, two financing strategies like the debt financing and the equity financing were studied, and the remanufacturer's selection boundary of the optimal financing strategy was found. This research shows that when remanufacturer's initial capital is limited, the equilibrium solution will be restricted by the initial capital level, moreover, the remanufacturer's initial capital level and the venture investor's equity dividend ratio are the key factors for the selection of the financing strategies. The result indicates that equity financing strategy makes the product prices lower and the total market sales higher, so as to improve the consumers' purchasing benefits and the social benefits of remanufacturing. Finally, within the range of comparable initial capital and equity dividend ratio, the optimal financing strategy and scientific suggestions are given by numerical analysis method.