Outsourcing decision-making in global remanufacturing supply chains: The impact of tax and tariff regulations

Li, Wei; Sun, Hui; Dong, Hao; Gan, Yuqin; Koh, Lenny

doi:10.1016/j.ejor.2022.05.016

Cited by 44 publications

(13 citation statements)

References 62 publications

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“…Lo et al (2022) proposed neutrosophic Indifference Novel SF method for global MOP Threshold-based Attribute Ratio Analysis (ITARA) and neutrosophic TOPSIS for sustainable strategic alliance partner selection in electronics component manufacturing firms. Li et al (2023) studied the impact of tax and tariff regulations on original equipment manufacturer outsourcing decisions in remanufacturing contexts. Merghem et al (2023) proposed mathematical programming for integrated production and maintenance planning in a hybrid manufacturing-remanufacturing context with outsourcing options.…”

Section: Outsourcing Partner Selection Criteriamentioning

confidence: 99%

“…(2022) proposed neutrosophic Indifference Threshold-based Attribute Ratio Analysis (ITARA) and neutrosophic TOPSIS for sustainable strategic alliance partner selection in electronics component manufacturing firms. Li et al . (2023) studied the impact of tax and tariff regulations on original equipment manufacturer outsourcing decisions in remanufacturing contexts.…”

Section: Literature Reviewmentioning

confidence: 99%

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A novel stochastic fuzzy decision model for agile and sustainable global manufacturing outsourcing partner selection in footwear industry

Akhtar

Gunasekaran

Kayıkçı

2023

JEIM

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PurposeThe decision-making to outsource and select the most suitable global manufacturing outsourcing partner (MOP) is complex and uncertain due to multiple conflicting qualitative and quantitative criteria as well as multiple alternatives. Vagueness and variability exist in ratings of criteria and alternatives by group of decision-makers (DMs). The paper provides a novel Stochastic Fuzzy (SF) method for evaluation and selection of agile and sustainable global MOP in uncertain and volatile business environment.Design/methodology/approachFour main selection criteria for global MOP selection were identified such as economic, agile, environmental and social criteria. Total 16 sub-criteria were selected. To consider the vagueness and variability in ratings by group of DMs, SF method using t-distribution or z-distribution was adopted. The criteria weights were determined using the Stochastic Fuzzy-CRiteria Importance Through Intercriteria Correlation (SF-CRITIC), while MOP selection was carried out using Stochastic Fuzzy-VIseKriterijumskaOptimizacija I KompromisnoResenje (SF-VIKOR) in the case study of footwear industry. Sensitivity analysis was performed to test the robustness of the proposed model. A comparative analysis of SF-VIKOR and VIKOR was made.FindingsThe worker’s wages and welfare, product price, product quality, green manufacturing process and collaboration with partners are the most important criteria for MOP selection. The MOP3 was found to be the best agile and sustainable global MOP for the footwear company. In sensitivity analysis, significance level is found to have important role in MOP ranking. Hence, the study concluded that integrated SF-CRITIC and SF-VIKOR is an improved method for MOP selection problem.Research limitations/implicationsIn a group decision-making, ambiguity, impreciseness and variability are found in relative ratings. Fuzzy variant Multi-Criteria Decision-Making methods cover impreciseness in ratings but not the variability. On the other hand, deterministic models do not cover either. Hence, the stochastic method based on the probability theory combining fuzzy theory is proposed to deal with decision-making problems in imprecise and uncertain environments. Most notably, the proposed model has novelty as it captures and reveals both the stochastic perspective and the fuzziness perspective in rating by group of DMs.Practical implicationsThe proposed multi-criteria group decision-making model contributes to the sustainable and agile footwear supply chain management and will help the policymakers in selecting the best global MOP.Originality/valueTo the best of the authors’ knowledge, SF method has not been used to select MOP in the existing literature. For the first time, integrated SF-CRITIC and SF-VIKOR method were applied to select the best agile and sustainable MOP under uncertainty. Unlike other studies, this study considered agile criteria along with triple bottom line sustainable criteria for MOP selection. The novel method of SF assessment contributes to the literature and put forward the managerial implication for improving agility and sustainability of global manufacturing outsourcing in footwear industry.

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Section: Outsourcing Partner Selection Criteriamentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

A novel stochastic fuzzy decision model for agile and sustainable global manufacturing outsourcing partner selection in footwear industry

Akhtar

Gunasekaran

Kayıkçı

2023

JEIM

View full text Add to dashboard Cite

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“…Zhao et al (2021b) discuss the impact of information asymmetry on the long-term remanufacturing mode selection between in-house and outsourcing modes. Li et al (2022) explore an OEM's remanufacturing mode choice between in-house and outsourcing K 53,1 under tax and traffic regulations. Niu et al (2022) investigate the decision on whether the retailer outsources remanufacturing activity to the third party considering yield uncertainty, and point out that the outsourcing mode results in higher profits for the retailer.…”

Section: Remanufacturing Mode Selectionmentioning

confidence: 99%

“…How to select the remanufacturing mode has become a key issue for OEMs. Many scholars have explored the optimal selection among different remanufacturing modes, including in-house and outsourcing (Wang et al, 2017;Zhao et al, 2021b;Liu et al, 2022), outsourcing and authorization (Zhang et al, 2020;Zuo et al, 2016), authorizing to the retailer and authorizing to the TPR (Zheng and Jin, 2022), from the perspectives of economy, society and environment and investigated the impact of various factors, such as irrational behavior (Zhang et al, 2020), constrained capital (Zhang et al, 2021), government regulation (Li et al, 2022) and consumers' differential willingness-to-pay (WTP) for new and remanufactured products (Zhang et al, 2020) and information asymmetry (Zhao et al, 2021b). However, the aforementioned literature implicitly assumes that the identity of remanufacturer has no impact on the consumers' perceived value of OEM's new products, and the quality of EOL products is homogeneous.…”

Section: Introductionmentioning

confidence: 99%

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Remanufacturing mode selection considering uncertain EOL products’ quality and differential consumers’ WTP

Tang²,

Li³

et al. 2022

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PurposeThe 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/approachThis 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.FindingsThe 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 implicationsThese 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/valueThis 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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Harnessing the power of module markets for effective product recovery strategies

Lai,

Zhou,

Wang

et al. 2024

Manage Decis Econ

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This paper investigates how product modularity affects a manufacturer's recovery strategy by constructing two trade‐in models: one with a module market and another without. Our results reveal that opening a module market is not always profitable for the manufacturer, except when the module production cost is extremely low. When opening it is less profitable, the manufacturer can boost profits by raising the module price, increasing salvage value, and reducing costs through remanufacturing. Regarding collection quantity, our findings reveal that a module market, particularly with high module costs and durability, increases trade‐in quantity, challenging the conventional expectations of market share erosion.

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Outsourcing decision-making in global remanufacturing supply chains: The impact of tax and tariff regulations

Cited by 44 publications

References 62 publications

A novel stochastic fuzzy decision model for agile and sustainable global manufacturing outsourcing partner selection in footwear industry

A novel stochastic fuzzy decision model for agile and sustainable global manufacturing outsourcing partner selection in footwear industry

Remanufacturing mode selection considering uncertain EOL products’ quality and differential consumers’ WTP

Harnessing the power of module markets for effective product recovery strategies

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