Abstract: This paper studies the decisions of price and service level of remanufactured products in three-stage supply chain including retail traders, new product manufacturers and remanufactured product manufacturers. The optimal decisions of the supply chain members under financial “guiding principal” decentralized circumstance, manufacturers-alliance circumstance and centralized circumstance are analyzed. The result shows that when the intensity of price competition of the new products and remanufactured products is pretty violent, the higher the wholesale price of one kind of product, the lower the retail price and service level of the other kind of product; when both of the manufacturer costs and service cost factors are equal, the higher the market base, the higher the wholesale price and service level. In the part of numerical experiments, the profit is distributed by using weighted Shapley value, the results show that the supply chain cannot always be coordinated.

Key words: certain demand, remanufactured products, service level, weighted Shapley value