Abstract:The distributor is only assumed to engage in collecting the used product and selling the product in previous literatures related to the distributor in the closedloop chain. However,this paper initially demonstrates the closedloop supply chain model where the distributor engages in remanufacturing,and we characterize its optimal pricing decisions of both producers. This paper demonstrates that,compared with the model that the distributor does not remanufacture,the producers can both benefit from the distributor’s remanufacturing; compared with the model that the manufacturer engages in remanufacturing,the former can benefit the distributor and the latter benefit the manufacturer from the perspective of the producer’s profit while the former is better than the latter from the perspective of the market’s profit,under which the manufacturer can transfer part of the profit of the distributor to herself on the premise that both the producers earn more than before. Further,the former case increases the consumers’welfare and accelerates the development of the remanufacturing.