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Academic Journal of Engineering and Technology Science, 2019, 2(4); doi: 10.25236/AJETS.2019.020404.

Profit Allocation of Remanufacturing Virtual Enterprises

Author(s)

Huirong Chen

Corresponding Author:
Huirong Chen
Affiliation(s)

School of Management, Shanghai University, Shanghai, China
*Corresponding author e-mail: 18883838804@163.com

Abstract

This paper discusses the profit distribution of remanufacturing virtual enterprises from two perspectives. Firstly, from the external point of view, the virtual remanufacturing enterprise is regarded as an oligopoly, and the maximum profit can be obtained when it plays the game with other oligopoly remanufacturing enterprises is analyzed, and the profit function is given. Secondly, from an internal perspective, the profit function is analyzed, and it is found that the factors affecting the overall profit of virtual enterprises are the production cost of unit remanufactured products. Then the profit distribution model is constructed according to the production cost of unit remanufactured product. Finally, the above profit distribution model is analyzed by examples, and the results are obtained. It is found that: when he profit of 30% is directly distributed to the core enterprise, and then 70% is distributed to the non-core enterprise, the profit distribution based on the production cost of unit remanufactured products is beneficial to the non-core enterprise.

Keywords

Virtual enterprises, remanufacturing, profit allocation

Cite This Paper

Huirong Chen. Profit Allocation of Remanufacturing Virtual Enterprises. Academic Journal of Engineering and Technology Science (2019) Vol. 2 Issue 4: 21-29. https://doi.org/10.25236/AJETS.2019.020404.

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