Design of the reverse channel for the third-party remanufacturing considering consumer education

Wang, Manman; Yang, Feng; Xia, Qiong

doi:10.1051/ro/2021153

Cited by 9 publications

(4 citation statements)

References 46 publications

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“…Like Wang et al [8] and Zhou et al [10], we assume that green consumers who are guided by environmental considerations tend to favor the remanufacturing of products. Then, the demand for remanufacturing products from green consumers is given as follows.…”

Section: Model Descriptionmentioning

confidence: 99%

“…Although green consumers' concern for the environment may even surpass their concern for a product's function [7,8], from the perspective of original equipment manufacturers (OEMs), the sale of remanufactured products would cannibalize the sales of new products [9,10]. In practice, to deal with the potential cannibalization effects on new products sales, many OEMs are unlikely to engage in remanufacturing themselves but usually contract it to third-party remanufacturers (TPRs).…”

Section: Introductionmentioning

confidence: 99%

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Outsourcing or Authorizing? Optimal Options for Third-Party Remanufacturing Modes with Green Consumerism

Wu,

Zhang,

Shen

2024

Sustainability

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In recent decades, more and more consumers are becoming concerned about the environment and increasingly tend to buy remanufactured products. However, despite the emergence of green consumerism, many original equipment manufacturers (OEMs) are unlikely to engage in remanufacturing themselves and instead prefer to contract it to third-party remanufacturers (TPRs). Although the literature has recently highlighted the difference between outsourcing and authorizing remanufacturing, it does not explore how green consumerism impacts the choice between these two remanufacturing modes. To fill this gap, in this study, we develop two theoretical models according to which the OEM can outsource or authorize its remanufacturing operations to a TPR to satisfy green consumers who prefer remanufactured products. By comparing optimal outcomes, such as quantities, profit, and environmental factors, our analysis shows that a substantial proportion of environmentally conscious consumers prefer the strategy of remanufacturing outsourcing, which provides a win–win–win strategy for the OEM, the TPR, and the environment; otherwise, the OEM chooses to authorize remanufacturing, which negatively affects the TPR and the environment. As such, we suggest that governments try to increase the proportion of the population that favors green consumerism or implement measures that encourage OEMs to adopt remanufacturing outsourcing.

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Section: Model Descriptionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Outsourcing or Authorizing? Optimal Options for Third-Party Remanufacturing Modes with Green Consumerism

Wu,

Zhang,

Shen

2024

Sustainability

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“…Zhou et al [ 47 ] explored how consumer education affects the interaction within the remanufacturing supply chain. Wang et al [ 48 ] investigated the effect of consumer education on the reverse channel designs considering different collection and remanufacturing capabilities. Then, Wang et al [ 49 ] further investigated the impact of warranty service and consumer education on remanufacturing decisions of an original equipment manufacturer.…”

Section: Literature Reviewmentioning

confidence: 99%

Does Environmental Education Always Contribute to Remanufacturing Supply Chain Development?

Yang

Bian³

2023

IJERPH

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Remanufacturing, as an effective way to save resources and alleviate environmental pollution, has gradually become a sustainable practice. Environmental education contributes to the development of remanufacturing by increasing the number of consumers willing to purchase remanufactured products (RPs). However, the incumbent manufacturer usually has limited remanufacturing capability together with yield uncertainty, making a third-party remanufacturer (3PR) an alternate channel choice. This study develops an analytical model to examine the effects of environmental education on a retailer’s choice of remanufacturing channels under in-store competition. Results show that consumer environmental education has the potential to significantly improve the retailer and supply chain profits, and temperate environmental education is always desirable for 3PR. The introduction of 3PR benefits the consumer when the retailer’s remanufacturing technology level is low. Furthermore, when the environmental impact of defective RPs is relatively high, and environmental education is temperate, selecting a 3PR will enhance environmental sustainability. This study also shows that 3PR can help achieve a win–win situation when environmental education and consumer acceptance of RPs are both in a certain range.

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“…A multi-channel recycling strategy can significantly improve recycling efficiency [25], and remanufacturing through manufacturers' channels or third-party channels is a common recycling channel [26]. The influencing factors of recycling channel selection for remanufacturers include the recycling cost [27], consumer preferences for remanufactured goods [28], channel competition [29] and channel cooperation [30], environmental impact [31], recovery price [32], etc. Selecting an appropriate recovery channel is an important part of operation and management in the reverse supply chain of ELVs [18].…”

Section: Recycling Channels Of the Reverse Supply Chainmentioning

confidence: 99%

Recycling Pricing and Government Subsidy Strategy for End-of-Life Vehicles in a Reverse Supply Chain under Consumer Recycling Channel Preferences

Wang

2023

Mathematics

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In the existing recycling system for end-of-life vehicles (ELVs), online recycling based on the Internet platform is a useful supplement. In this paper, a Stackelberg game pricing model, which is dominated by ELV part remanufacturers and composed of remanufacturers, recyclers, and consumers, is constructed considering consumer preferences for recycling channels. The influence of different subsidy strategies on the optimal pricing, profit, and recycling volume of the reverse supply chain (RSC) of ELVs is discussed, and the effects of factors such as subsidy amount and consumer preferences on the RSC of ELVs are analyzed using numerical simulation. The results show that the increase in consumers’ online recycling preferences has a positive effect on the recycling volume and profit of the RSC of ELVs. Considering the recycling volume of the RSC, when fewer subsidies are given, more recycling volume can be generated by subsidizing remanufacturers, and, on the contrary, recycling volume will be generated by subsidizing consumers. Considering the profit of the RSC, when subsidies are given at the lower-middle level, higher profits can be earned by subsidizing remanufacturers, and, on the contrary, higher profits can be earned by subsidizing consumers.

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Design of the reverse channel for the third-party remanufacturing considering consumer education

Cited by 9 publications

References 46 publications

Outsourcing or Authorizing? Optimal Options for Third-Party Remanufacturing Modes with Green Consumerism

Outsourcing or Authorizing? Optimal Options for Third-Party Remanufacturing Modes with Green Consumerism

Does Environmental Education Always Contribute to Remanufacturing Supply Chain Development?

Recycling Pricing and Government Subsidy Strategy for End-of-Life Vehicles in a Reverse Supply Chain under Consumer Recycling Channel Preferences

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