Customized Investment Decisions for New and Remanufactured Products Supply Chain Based on 3D Printing Technology

Abstract

Three-dimensional printing and customized products are gradually emerging, and many manufacturers use 3D printing technology to customize products according to the individual needs of consumers. We focus on the differential pricing of new products and remanufactured products after being customized by 3D printing and the profit distribution of supply chain members. Through building the Stackelberg game model led by the manufacturer, we discuss how supply chain members should make investment decisions about customized new and customized remanufactured products with the goal of maximizing the manufacturer’s profit when there are two models of remanufacturing by the OEM and remanufacturing by the retailer. Finally, through the simulation analysis of MATLAB, we explain how the manufacturer and the retailer make decisions under the influence of customization sensitivity coefficient and customization cost. We also analyze the impact of relevant factors on the level of customization effort and whether supply chain members are suitable for custom production. We found that when the level of customization effort is relatively low, both the manufacturer and the retailer should choose the manufacturer to complete the customization process. However, when the level of customization effort is relatively high the manufacturer can transfer the customization process to the retailer, but the retailer should still let the manufacturer lead the customization process for his own profit maximization.