Abstract: To enhance the core manufacturing advantages and achieve the “dual carbon” goal, original equipment manufacturers (OEM) make the alliances with downstream retailers and third-party remanufacturers (TPR) based on the authorized remanufacturing model, forming a closed-loop supply chain alliance structure of reverse recycling channel cooperation and forward sales channel competition. For better leveraging the positive effects of alliances, we construct four alliance structures, including no alliance, OEM-retailer alliance, OEM-TPR alliance and retailer-TPR alliance. Then, we optimize the decisions of enterprises under the market situation of differentiated product competition. Furthermore, we use the optimal profit of no alliance structure as the benchmark to test whether channel members have the motivation to form alliances with other members. Besides, the Nash negotiation model is used to solve the internal profit distribution problem of alliances and investigate the stability of each alliance structure. Meanwhile, the differences of optimal decisions, consumer surplus and environmental impact among different alliance structures are compared through theoretical and numerical analysis. The results show that the participation of the OEM in an alliance can intensify the competitive pressure of new and remanufactured products and stimulate the growth of total market sales; the retailer’s participation in an alliance increases the market share of new products, but it is not conducive to the recycling and remanufacturing of used products; when the TPR participates in an alliance, the retail price differences between the new and remanufactured products increases, which is beneficial to enhancing the market competitiveness of remanufactured products. Any two parties in the closed-loop supply chain are highly motivated to ally with each other, but only the alliance structure formed by the OEM and the retailer can remain stable. In addition, the OEM always has the advantage of profit distribution while the TPR always has the disadvantage of profit distribution in different alliance structures. From the consumer perspective, an alliance with the OEM can bring benefits to consumers; from the environmental point of view, an alliance with the TPR may be the most beneficial to the environment.

Key words: authorized remanufacturing, closed-loop supply chain, alliance strategy, decision optimization