Bricks vs. clicks: Which is better for marketing remanufactured products?

Yan, Wei; Xiong, Yu; Xiong, Zhongkai; Guo, Ning

doi:10.1016/j.ejor.2014.10.023

Cited by 137 publications

(104 citation statements)

References 37 publications

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“…For this reason, we associate each consumer with their willingness to pay for a new product (u, also called "type"), which is uniformly distributed in the interval of [0,1]. Consistent with the findings of previous studies [30,35], the primary consumer will discount the value of the remanufactured product to be a fraction θ(0 ≤ θ ≤ 1) of the willingness-to-pay for a new product (i.e., θu). Consequently, the demands for the new and remanufactured products are given, respectively, by Equation (1):…”

Section: Consumerssupporting

confidence: 69%

“…Second, to keep our focus on our research questions, we assumed that all decisions were considered in a single-period setting. While this assumption is common in the remanufacturing literature [19,30,40], it does not reflect the relationship between a product's lifecycle and remanufacturing decisions. Third, we viewed OEMs as producers of new products and did not allow them to engage in remanufacturing.…”

Section: Discussionmentioning

confidence: 99%

“…Similar to Savaskan et al [19] and Yan et al [30], we assumed that all decisions are considered in a single-period setting. The timing in both models is as follows.…”

Section: Assumptionsmentioning

confidence: 99%

“…We assumed that the marginal cost to produce a remanufactured product is c r . To ensure that making a remanufactured product is less costly than producing a new one, we further assume that c n > c r > 0 according to the finding of Yan et al [30].…”

Section: The Tprmentioning

confidence: 99%

“…We used the usual assumption that the OEM is a Stackelberg leader [30]. The OEM's problem involves choosing the patent license fee ( f ) and the units of new products (q n ) to maximize its profit (π j i ) (where π j i refers to the profits for player i under supply chain model j, superscript j ∈ {D, I} denotes Model D and Model I, respectively, while subscript i ∈ {m, 3p, t} denotes the OEM, the TPR, and the total supply chain, respectively).…”

Section: The Oemmentioning

confidence: 99%

See 4 more Smart Citations

Owning or Outsourcing? Strategic Choice on Take-Back Operations for Third-Party Remanufacturing

Yan

Chai

et al. 2018

Sustainability

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Abstract:Despite the remanufacturing process having demonstrated economic, social, and environmental benefits, many original equipment manufacturers (OEMs) have not engaged in the remanufacturing process themselves, as they often outsource it to a third party. In practice, such outsourcing usually involves two different options/modes for OEMs with consideration of take-back operations: (1) owning the reverse channel and collecting cores directly (Model D) or (2) outsourcing these operations to a third-party remanufacturer (TPR) and collecting cores indirectly (Model I). However, this raises the important question of whether OEMs should also outsource their reverse channels to third-party remanufacturers when outsourcing remanufacturing. Furthermore, there needs to be an investigation of which method is more beneficial in terms of economic, social, and environmental outcomes. This paper uses modelling to investigate the costs and benefits of these options in terms of sustainability. We found that, compared to Model I, the OEM conducting take-back operations itself can achieve the overall better outcomes for all economic, social, and environmental situations.

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Section: Consumerssupporting

confidence: 69%

Section: Discussionmentioning

confidence: 99%

“…Similar to Savaskan et al [19] and Yan et al [30], we assumed that all decisions are considered in a single-period setting. The timing in both models is as follows.…”

Section: Assumptionsmentioning

confidence: 99%

Section: The Tprmentioning

confidence: 99%

Section: The Oemmentioning

confidence: 99%

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Owning or Outsourcing? Strategic Choice on Take-Back Operations for Third-Party Remanufacturing

Yan

Chai

et al. 2018

Sustainability

Self Cite

View full text Add to dashboard Cite

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Operational and financing decisions of a contract manufacturer under remanufacturing authorization strategy

2023

Manage Decis Econ

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In recent years, the remanufacturing authorization strategy has widely drawn the attention of practitioners to solve the contradictions and conflicts between contract manufacturers (CMs) and original equipment manufacturers (OEMs). However, few studies about authorization remanufacturing consider that the CM is restricted by the limited initial capital. To fill this gap, we build a supply chain with a capital‐constrained CM and an OEM, where the CM can choose the bank financing or the OEM financing. Our results show that when the wholesale prices are exogenous, the CM will choose the OEM financing strategy if the bank's interest rate is in a relatively low or high range. Conversely, the OEM will not offer financing to the CM under the endogenous wholesale prices. Furthermore, it is interesting to find that the authorization fee under the bank financing is always higher than that under the OEM financing.

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Recycling investment strategies in two‐sided competition with diverse vertical structures

Liu,

Li,

Zhang

et al. 2024

Manage Decis Econ

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The supply chain consisting of an original equipment manufacturer (OEM) and a downstream retailer encounters vertical competition along with two‐sided competition from a third party remanufacturer (3PR). The two‐sided competition refers to competition in both recycling and sales. We investigate the recycling investments by the OEM and retailer in diverse vertical structures. Our findings indicate that cooperative investment is optimal when either the OEM or retailer is the Stackelberg leader, but neither party is willing to invest in recycling when they are in vertical Nash. The experiments reveal that the OEM, acting as the Stackelberg leader, and implementing the cooperative investment strategy, yields better economic and environmental benefits.

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Bricks vs. clicks: Which is better for marketing remanufactured products?

Cited by 137 publications

References 37 publications

Owning or Outsourcing? Strategic Choice on Take-Back Operations for Third-Party Remanufacturing

Owning or Outsourcing? Strategic Choice on Take-Back Operations for Third-Party Remanufacturing

Operational and financing decisions of a contract manufacturer under remanufacturing authorization strategy

Recycling investment strategies in two‐sided competition with diverse vertical structures

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