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1 – 10 of over 1000Xiaogang Cao, Boning Xiao, Hui Wen and Mingzhe Fu
This paper explores how the existence of a second-hand market can affect remanufacturing decisions for durable goods in the presence of patent protection.
Abstract
Purpose
This paper explores how the existence of a second-hand market can affect remanufacturing decisions for durable goods in the presence of patent protection.
Design/methodology/approach
The authors construct a dynamic decision model between a durable goods original manufacturer and a durable goods remanufacturer considering the characteristics of the multi-cycle uses of new durable goods and remanufactured durable goods.
Findings
The results show that (1) the second-hand market compresses the cost space of a durable goods original manufacturer and a remanufacturer; (2) when the second-hand market exists, the optimal pricing of new durable goods is reduced, the optimal pricing of remanufactured durable goods is increased and the patent cost of each unit of durable goods increases and (3) the presence of the second-hand market will increase the original manufacturer's and remanufacturer's profits.
Originality/value
The research conclusion has certain reference value for the production strategy selection of each enterprise in the process of patented product remanufacturing and the government's fiscal policy formulation at each stage of the remanufacturing industry's development.
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The purpose of this study is to explore the interplay between the selection of selling formats of remanufactured products for a third-party remanufacturer (TPR) and the quality…
Abstract
Purpose
The purpose of this study is to explore the interplay between the selection of selling formats of remanufactured products for a third-party remanufacturer (TPR) and the quality decision of an original equipment manufacturer (OEM).
Design/methodology/approach
This study considers a remanufacturing supply chain, where the OEM sells new products through a platform retailer, but the products remanufactured by the TPR can be sold via a direct or indirect channel. The authors model a Stackelberg game and explore the optimal quality decision of the OEM and selling format choice of the TPR.
Findings
The OEM's optimal decision depends mainly on consumers' discounted utility coefficient and cost-scale factor of remanufactured products. A higher consumers' valuation of the remanufactured product will not result in a higher retail price, but may lead to an increase in new product's sales. Given the cost-scale factor, the TPR prefers to sell directly no matter what the value of consumers' discounted utility coefficient is. An all-win situation is achieved with selling directly when consumers' discounted utility coefficient is sufficiently large.
Practical implications
These results provide some support to the operational strategies of the OEM and TPR.
Originality/value
This study firstly endogenizes the quality decision and combines the selling format selection of the TPR and the quality decision of the OEM to explore the interplay between these two important decisions.
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Yanyan Zheng, Peng Liu, Yingxue Zhao and Zhichao Zhang
This paper examines how the level of low-carbon awareness (LCA) affects the remanufacturing strategy in a supply chain with an original equipment manufacturer (OEM) and an…
Abstract
Purpose
This paper examines how the level of low-carbon awareness (LCA) affects the remanufacturing strategy in a supply chain with an original equipment manufacturer (OEM) and an independent remanufacturer (IR) competing with each other.
Design/methodology/approach
Game theory and operations optimization.
Findings
The studies analytically characterize the threshold levels of the LCA in response to which the OEM and the IR will change their remanufacturing strategies from no remanufacturing to partial remanufacturing and then to full remanufacturing. In addition, the studies reveal that as compared with the OEM, the IR has more flexibility in terms of the market entry to remanufacturing with the level of LCA increasing. With the extended studies, it is exhibited that the above findings are robust to a good extent.
Originality/value
It can provide decision support for remanufacturing enterprises.
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Xiaogang Cao, Hui Wen and Bowei Cao
In this paper, the authors study the production and pricing decisions of a remanufacturing supply chain composed of a supplier, an assembler and a remanufacturer, in which the…
Abstract
Purpose
In this paper, the authors study the production and pricing decisions of a remanufacturing supply chain composed of a supplier, an assembler and a remanufacturer, in which the remanufacturing of components requires patent licensing from the supplier.
Design/methodology/approach
The authors consider three different models with government subsidy for remanufacturing: (1) no government subsidies; (2) the government subsidizes the remanufacturing behavior of the supplier and (3) the government subsidizes the remanufacturing behavior of the remanufacturer and use the Stackelberg game model to solve and analyze the equilibrium wholesale prices of components and the equilibrium outputs of new and remanufactured products under three subsidy modes.
Findings
The results show that the equilibrium wholesale prices of two kinds of components decrease with the unit patent licensing fee and the unit government subsidy, and the equilibrium quantity of the remanufactured products under the three modes is obviously higher than that of the new products.
Originality/value
Finally through numerical simulation, it is found that the equilibrium profits of the supplier, the manufacturer and the supply chain increase monotonously in relation to the unit government subsidy, while the optimal profit of the assembler in relation to the unit government subsidy tends to decrease first and then increase.
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Bohai Liu, Qi Song, Handong Zheng, Yaoyao Ma and Kai Li
In this paper, the authors aim to study the optimal strategy of original equipment manufacturers (OEMs) considering both consumer segmentation and upward substitution of…
Abstract
Purpose
In this paper, the authors aim to study the optimal strategy of original equipment manufacturers (OEMs) considering both consumer segmentation and upward substitution of remanufactured products in the product life cycle.
Design/methodology/approach
In this paper, the authors develop two remanufacturing models: the OEM remanufacturing model and the authorized remanufacturing model. Then, the authors study the impact of both green consumers' scale and the product life cycle expressed as the market growth rate on the OEM's optimal decision-making. Therefore, the authors derive the optimal solutions of the two models by using game theory.
Findings
The authors find that in the case of low market growth rate, when there only exist ordinary consumers, if the substitutability of remanufactured products produced by the OEM is below one threshold or above another threshold, the OEM can obtain higher profit in the OEM remanufacturing model, and vice versa. If the substitutability of remanufactured products produced by the OEM is below a threshold when there are both ordinary and green consumers, the OEM prefers the authorized remanufacturing model; and vice versa. Moreover, in the case of high market growth rate, the OEM prefers the OEM remanufacturing model only when the substitution-level in OEM remanufacturing model is above a threshold.
Originality/value
The present study fills the gap in existing researches by simultaneously discussing product life cycle and green consumers' scale. The authors provide manufacturers with a new basis for remanufacturing decisions.
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Bangyi Li, Juan Tang, Zhi Liu and Bengang Gong
The purpose of this paper is to investigate remanufacturing operational strategies considering uncertain quality of end-of-life (EOL) products and differential consumers’…
Abstract
Purpose
The purpose of this paper is to investigate remanufacturing operational strategies considering uncertain quality of end-of-life (EOL) products and differential consumers’ willingness-to-pay (WTP) for new products and provide suggestions on the remanufacturing mode selection for the original equipment manufacturer (OEM).
Design/methodology/approach
This study considers three remanufacturing modes, i.e. in-house, outsourcing and authorization modes. By establishing and comparing decision models of three modes from the perspectives of profit, consumer surplus and environment, the optimal remanufacturing mode is discussed.
Findings
The results suggest that if the OEM’s remanufacturing capability is high, the in-house mode brings to the highest environmental performance, OEM’s profit and consumer surplus. Otherwise, the outsourcing mode (authorization) is the best benefit to environment (consumers if the unit production cost of new products is not too high). As for the preference of two decision-makers to outsourcing and authorization modes, if the difference of consumers’ WTP for new products is low, the OEM prefers the outsourcing mode; otherwise, the OEM prefers the authorization mode. The preference of the third-party remanufacturer (TPR) to remanufacturing mode is affected by consumers’ WTP for remanufactured products, WTP difference for new products and remanufacturing quality level standard.
Practical implications
These results can provide operational insights into how to select remanufacturing mode when the quality of EOL products is uncertain and consumers’ WTP for new products is different under three remanufacturing modes.
Originality/value
This paper is among the first to investigate the joint effects of EOL products’ uncertain quality and differential consumers’ WTP for new products on the operational strategies and performance under different remanufacturing modes.
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Uttam Kumar Khedlekar and Priyanka Singh
For smooth running of business affairs, there needs to be a coordination among manufacturer, collector and retailer in forward and reverse supply chain. This paper handles the…
Abstract
Purpose
For smooth running of business affairs, there needs to be a coordination among manufacturer, collector and retailer in forward and reverse supply chain. This paper handles the problem of making pricing, collecting and percentage sharing decisions in a closed-loop supply chain. The purpose of this paper is to examine the effect of responsibility sharing percentage on the profits of a manufacturer, a retailer and a collector. The paper further aims to understand the mutual interactions among decision variables and profit functions. It also determines the optimal selling price, optimal time, wholesale price, sharing percentage and optimal return rate in such a manner that the profit function is maximized.
Design/methodology/approach
The authors presented a three-echelon model consisting of a manufacturer, a retailer and a collector in the closed-loop supply chain and optimized the profits of each supply chain member. The authors introduced SRR models for the remanufacturing by providing some percentage of physical and financial support to the collector. Optimization techniques have been applied to obtain optimal solutions. Numerical examples and graphical representations of the optimal solutions are provided to illustrate the model.
Findings
This study stresses on profitable value retrieval from returned products, and it discusses how responsibility sharing can improve profitability and reduce the workload of an individual. In total, three main results are found. First, sharing and coordination among chain members can improve collector’s profit. Second, supply chain performance may also improve over time. Third, the profit of each member of the supply chain increases with an increase in sharing percentage up to a certain limit. So, the manufacturer can share the responsibility of the collector under a fixed limit.
Research limitations/implications
The main limitation of this model is that there is no difference between manufactured and remanufactured products. There are many correlated issues that need to be further investigated. The future study in this direction may include multi-retailer, stochastic demand patterns.
Practical implications
It is directly utilized by supply chain industries in which coordination among chain members is still needed to maximize profits. This information enables the manufacturer to assist the collector financially or physically for the proper management of the three-layer supply chain. The present work will form a guideline to choose the appropriate parameter(s) and mathematical technique(s) in different situations for remanufacturable products.
Social implications
From the management point of view, this study delivers the strongest result to remanufacturing companies and for whom effective and efficient coordination among chain members is vital to the overall performance of the supply chain.
Originality/value
There are very few studies that consider the remanufacturing of used products under a fixed time period. The authors considered selling price-sensitive and time-dependent exponentially declining demand. This model is developed by considering all possible help to a collector from manufacturer to collect used products from consumers. This research complements past research by showing coordination among supply chain members within a fixed time horizon.
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Kenichi Nakashima and Arvinder P.S. Loomba
The purpose of this study is to consider the acquisition of end‐of‐life products under variable quality consideration for remanufacturing so as to determine optimal control policy…
Abstract
Purpose
The purpose of this study is to consider the acquisition of end‐of‐life products under variable quality consideration for remanufacturing so as to determine optimal control policy that minimizes per‐period expected costs that may guide future consideration by practitioners.
Design/methodology/approach
The authors review recent literature on reverse supply chains and remanufacturing. They utilize an undiscounted Markov decision process methodology to ascertain the order amount of remanufacturable products using optimal control under minimum cost criterion.
Findings
The authors conclude that it makes sense for firms to focus on the cost management with production control based on quality levels with different acquisition costs of remanufacturable products.
Research limitations/implications
Although the Markov decision process methodology – which is well supported in literature – was diligently followed, the nature of analysis and discussion may be subject to authors’ bias. Future investigation and adoption of the methodological approach used will verify the paper findings.
Practical implications
This study determines optimal control policy for ordering specific amount of product that minimizes per‐period expected costs for remanufacturing. Reverse supply‐chain professionals now have an easy‐to‐follow guide when acquiring end‐of‐life remanufacturable products alternatives with variable quality.
Social implications
This study determines the optimal policy for ordering remanufacturable products. This information enables practitioners to reduce their carbon footprint in reverse supply chain through inspection/sorting before remanufacturing by processing only the type, quality, and quantity of needed product.
Originality/value
For reverse supply chain to be taken seriously by senior management in firms, it is imperative that practitioners in this field synchronize their operational‐level ordering decisions with holistic cost minimization objective (to maximize value recovery) to stay viable.
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Jing Shao, Shuo Huang, Isaac Lemus-Aguilar and Enes Ünal
Although China can be considered an early adopter of the circular economy, there are few studies of remanufacturing business models (BMs) in the context of the Chinese automobile…
Abstract
Purpose
Although China can be considered an early adopter of the circular economy, there are few studies of remanufacturing business models (BMs) in the context of the Chinese automobile industry. The purpose of this paper is to investigate viable BMs, summarizes current obstacles and anticipates future development opportunities and directions.
Design/methodology/approach
The cross-case analysis considers the roles of value networks and of customer value proposition and interface in circular business models (CBMs) by examining the strategies and tactical measures of two leading remanufacturers. The data are collected from semi-structured interviews, documents, etc.
Findings
The analysis identifies the following components of viable BMs of remanufacturers: reclaiming raw material, managing used components, producing new products and marketing. Several current obstacles are summarized from four perspectives: policy barriers and insufficient government support; consumer awareness; related product quality; and technology. The study also identifies future directions and opportunities for the automobile parts remanufacturing industry.
Originality/value
This study contributes to the CBM literature by mapping the barriers and opportunities in remanufacturing. The results have shed some light into the field of sustainability in manufacturing firms by empirically testing the theoretical model. The results will help managers to design viable CBMs in different contexts.
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Erik Sundin, Mattias Lindahl and Winifred Ijomah
The purpose of this paper is to elucidate how Swedish industry has adapted their products for product/service systems (PSS).
Abstract
Purpose
The purpose of this paper is to elucidate how Swedish industry has adapted their products for product/service systems (PSS).
Design/methodology/approach
Three case study companies that manufacture forklift trucks, soil compactors and household appliances are studied. Interviews with company staff are conducted as well as product analyses in laboratorial environment. The theory is based mainly on previous PSS, design and remanufacturing research.
Findings
A key factor when developing products for PSS is to design the product from a life‐cycle perspective, considering all the product's life‐cycle phases, namely manufacturing, use, maintenance and end‐of‐life treatment. Many of the design improvements deal with the accessibility of parts and components during maintenance and remanufacturing operations, and several of them could reduce the need and cost for maintenance, repair and remanufacturing.
Research limitations/implications
Uncovering any additional product requirements needed for a successful PSS not addressed in this paper. For example, it could be interesting to explore which product data could be collected during use in order to improve the products' different life stages.
Practical implications
The findings in this paper illustrate and describe many industrial implications for engineering designers to consider when developing PSS.
Originality/value
The novelty of this paper is aimed for designers to study how they can adapt their future products used in PSS in a more beneficial way than in traditional product design. The paper shows ideas and general guidelines to follow which have been scarcely published.
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