Optimal strategies for trade-old-for-remanufactured programs: Receptivity, durability, and subsidy

Han, Xiao; Yang, Qianxia; Shang, Jennifer; Pu, Xujin

doi:10.1016/j.ijpe.2017.07.025

Cited by 80 publications

(48 citation statements)

References 30 publications

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“…This shows that consumers decide whether they engage in TOR programs depending on the durability of new products. A lower durability of new products encourages more consumers to participate in TOR programs, which is consistent with Han et al, 2017 [7]. Consequently, enterprises can rationally design for the durability of new products to prompt consumers to engage in TOR programs.…”

Section: N1 N2 N3supporting

confidence: 79%

“…For example, Han et al (2017) examine the status of TOR programs operated by companies when there is a large difference between consumer acceptance of remanufactured products and the durability of new products. Their study shows that a rise in government subsidies and a drop in durability can stimulate consumers to participate in TOR programs, and the involvement of TOR programs can increase recycling rates of products [7]. For a scenario in which TON and TOR coexist, Ma et al (2017) explore the optimal pricing decisions of enterprises and determine the threshold at which enterprises should provide TON and TOR, and they discuss the optimal strategies for enterprises if government subsidies are subject to budget limits [8].…”

Section: Trade-old-for-new (Remanufactured) Literaturementioning

confidence: 99%

“…It is assumed that the discount factor in the second stage is δ(0 < δ < 1). For stability and equilibrium, common parameters are developed in the model of durable goods in multiple stages (Agrawal and Thomas 2012; Han et al, 2017) [7,45]. Table 2 shows specific parameters and their meanings.…”

Section: Decision Processesmentioning

confidence: 99%

“…Initially, TOR programs without carbon tax are explored. TOR has already been studied by Han et al (2017) [7], which serves as the reference for the model built in our study. The TOR program without carbon tax is the reference model for drawing the optimal strategy to distinguish between the impacts of carbon tax and government subsidies on enterprises, society, and the environment.…”

Section: Analyses and Comparisons In The Modelmentioning

confidence: 99%

“…Subsidies under this policy could add up to a total of 43 billion US dollars [6]. To increase the demand for remanufactured products and encourage the recycling of waste products, a number of enterprises and governments have initiated Trade-Old-for-Remanufactured (TOR) programs, a process in which consumers purchase remanufactured products at replacement prices by returning their waste products [7]. TON aims to encourage consumers possessing waste products to purchase new products by offering discounts.…”

Section: Introductionmentioning

confidence: 99%

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Trade-Old-for-Remanufactured Closed-Loop Supply Chains with Carbon Tax and Government Subsidies

et al. 2018

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The constantly increasing CO2 emissions are threatening the environment tremendously. Facing the pressure of environmental activists and public opinion, businesses and governments are taking action to reduce carbon emissions. Among these endeavors, carbon tax and subsidy policies proposed by governments are widely adopted. Remanufacturing is believed to save manufacturing costs and reduce carbon emissions from the process of enterprise operation, and it is increasingly being accepted by enterprises. However, different consumers’ willingness to pay for remanufactured products and the durability of new products will also affect consumers’ willingness to buy remanufactured products. Therefore, considering the discrepancy between consumer willingness to pay and product durability, we established the trade-old-for-remanufactured (TOR) model for a scenario of carbon tax and government subsidies. Through the analysis of the model, we obtained the optimal pricing and production decisions of manufacturers (remanufacturers) in the case of carbon tax and government subsidies. Our results show that, when there is no carbon tax constraint, the increase in consumer willingness to pay and the adjustment in product durability can stimulate consumers to participate in TOR projects and augment enterprises’ profits. However, it can also lead to a carbon rebound that increases corporate carbon emissions. When there is a carbon tax constraint, the introduction of carbon tax contributes to a reduction in carbon emissions, while enterprises tend to lose profits. In order to achieve a “win-win” between corporate profits and carbon emissions, we considered government subsidy policies. Our numerical examples illustrate that appropriate carbon tax and government subsidies can curb carbon emissions and also increase profits for enterprises.

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Section: N1 N2 N3supporting

confidence: 79%

Section: Trade-old-for-new (Remanufactured) Literaturementioning

confidence: 99%

Section: Decision Processesmentioning

confidence: 99%

Section: Analyses and Comparisons In The Modelmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Trade-Old-for-Remanufactured Closed-Loop Supply Chains with Carbon Tax and Government Subsidies

et al. 2018

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Manufacturer encroachment on a closed‐loop supply chain with design for remanufacturing

Chen

Chi

2021

Manage Decis Econ

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This paper examines the manufacturer encroachment on both forward and reverse flows of a closed‐loop supply chain with two different design for remanufacturing (DfRem) approaches. We show that both DfRem approaches lead to Pareto improving encroachments under certain conditions. Design for modularity (DfM) compensates for the retailer's encroachment loss through dual positive spillover effects via lower wholesale price and higher buyback price to selling and collecting activities. Design for durability (DfD) simultaneously expands the retailer's sales and stimulates offline collecting via buyback price reimbursement. DfD outperforms DfM in achieving more profitable win‐win encroachments.

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Updated‐generation product introduction decisions under trade‐in programs and different pricing strategies

Fan,

Zhao,

Zhu

2024

Manage Decis Econ

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Manufacturers introduce updated‐generation products to meet intensified competition under trade‐in programs. Based on this phenomenon, we built a two‐period game‐theoretic model, in which the manufacturer sells the old‐generation product during both periods and considers whether to introduce the updated‐generation product in the second period. We find that under a static pricing strategy, if the costs of both products are low, the updated‐generation product's entry increases the old‐generation product's retail price. The manufacturer cannot benefit from introducing the updated‐generation product if the updated‐generation product's cost is high. Under a dynamic pricing strategy, the updated‐generation product entry benefits both the manufacturer and the consumer.

show abstract

Optimal strategies for trade-old-for-remanufactured programs: Receptivity, durability, and subsidy

Cited by 80 publications

References 30 publications

Trade-Old-for-Remanufactured Closed-Loop Supply Chains with Carbon Tax and Government Subsidies

Trade-Old-for-Remanufactured Closed-Loop Supply Chains with Carbon Tax and Government Subsidies

Manufacturer encroachment on a closed‐loop supply chain with design for remanufacturing

Updated‐generation product introduction decisions under trade‐in programs and different pricing strategies

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