Research on the game strategy of manufacturer channel encroachment and AI empowerment in the remanufacturing outsourcing supply chain

The continuous advancement of artificial intelligence technology is impacting the operational mechanisms and market competition structures of closed-loop supply chains. How to integrate AI empowerment with channel strategies for coordinated optimization has become a core decision-making issue for manufacturers. By establishing three progressive game models: the benchmark model (M0), the encroachment model (M1), and the AI empowerment model (M2), this study investigates the strategic interplay arising from manufacturers' channel encroachment decisions and AI technology deployment in the context of remanufacturing outsourcing, along with the resulting economic implications. The study finds that when channel differentiation is significant, the manufacturer's encroachment can enhance its profits through market expansion effects. On this basis, by introducing AI technology, its enabling effect exhibits a non-linear characteristic. Only when the channel substitution degree is low and the price sensitivity is moderate, can AI achieve the synergistic benefits of cost savings and market expansion. In terms of revenue distribution, the AI dividend has extensive penetration among supply chain members. Retailers only suffer losses in extreme scenarios where the channels are highly homogeneous and consumers are not price-sensitive. In most market conditions, they can share the efficiency improvement brought about by technology empowerment. This study theoretically reveals the interaction mechanism between channel encroachment and AI empowerment, expands the analytical boundaries of closed-loop supply chain management, and provides strategic guidance for manufacturing enterprises on how to formulate collaborative strategies in the wave of digital transformation.