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Considering consumers' heterogeneity of the demand for new and remanufactured products, we derived the demand function and studied the original equipment manufacturer (OEM) and independent operator (IO) how determine the scale of new and remanufactured products according to the cost savings of remanufacture under the condition of competition among the new products, the remanufactured products produced by OEM and the remanufactured products produced by IO. Next we compared the OEM's profits under the conditions of monopoly and competition and finally analyzed the effect of new product costs on the OEM and IO's production strategies by numerical examples. The conclusions state the OEM and IO can choose 12 different production strategies according to the cost savings of remanufacture. The competition of IO enables the OEM to lower profits, the OEM should remanufacturing deal with the manufacturer's competition. When the cost of new product is very low, the OEM is more inclined to remanufacture nothing or some of intercepted cores and the IO is more inclined to remanufacture all cores it collects. [ABSTRACT FROM AUTHOR]

This paper analyzed the dynamic evolution process of the remanufacturing entry decisions of manufacturers based on the evolutionary game model under duopoly competition. The results show that the evolutionary stable strategies are affected by the ratio of remanufactured products' added value to new products'. Moreover, the system will evolve to different equilibriums under different boundary conditions. Furthermore, appropriate government subsidy will promote the strategy equilibrium of both remanufacturing. [ABSTRACT FROM AUTHOR]