Sustainable Decisions on Product Upgrade Confrontations with Remanufacturing Operations

Sun, Lin; Zhang, Lingjiang; Li, Youwei

doi:10.3390/su10114090

Cited by 12 publications

(16 citation statements)

References 33 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Following [44,46], the per unit environmental impact of new and remanufactured product is identical in the usage phase. The total environmental impact due to the product usage phase is a function of the quantity of new and remanufactured in use, that is…”

Section: Environmental Implicationsmentioning

confidence: 99%

“…(1) When More specifically, in the production phase, given the per unit environmental impact is e m , the environmental impact that comes from manufacturing new products is E j m = e m q j * n . Following [44,46], the per unit environmental impact of new and remanufactured product is identical in the usage phase. The total environmental impact due to the product usage phase is a function of the quantity of new and remanufactured in use, that is E u j = e u (q n j * + q r j * ).…”

Section: Proposition 6 the Effect Of Two Models On The Environment Imentioning

confidence: 99%

See 1 more Smart Citation

Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing

Liang

Wang

2020

Sustainability

View full text Add to dashboard Cite

Although many studies have recently investigated how the product quality impacts on economic and environment performance under remanufacturing, all of them assume that remanufacturing operations are undertaken by the original equipment manufacturers (OEMs) or independent remanufacturers (IRs). However, many OEMs such as Lexmark, Canon, and Epson filed lawsuits with those IRs without licensing, but outsourced the remanufacturing operations to several contracted remanufacturers (CRs). We therefore extend the prior research to investigate the economic and environmental implications of OEMs’ strategic desired quality level choices under remanufacturing outsourcing. That is, we develop two models corresponding to two scenarios where OEMs (1) undertake remanufacturing in-house or (2) outsource it to a CR. Our results show that, to create a less intense cannibalization problem for new products sales, OEMs would be likely to choose a lower product quality when outsourcing remanufacturing to a CR. More importantly, from the economic perspective, we find that outsourcing remanufacturing to a CR hurts the OEM and the industry. However, from the environmental angle, our results reveal that there is a ratio threshold for environmental impact for different life cycle phases, above which remanufacturing in-house is definitely beneficial for OEM in economics and environment, but for the rest, outsourcing is equally or more environmental-friendly, despite cutting down the profit.

show abstract

Section: Environmental Implicationsmentioning

confidence: 99%

Section: Proposition 6 the Effect Of Two Models On The Environment Imentioning

confidence: 99%

Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing

Liang

Wang

2020

Sustainability

View full text Add to dashboard Cite

show abstract

“…Kirshner et al [5] advised that brand commitment and the risk of product failure play an important role in the timing of upgrades for a durable product. Sun et al [6] developed two models that highlight the OEM's product upgrading strategy under two scenarios. Cui et al [7] studied the effect of introducing a vertical differentiation strategy through sales of upgrades to a new type of premium product on the firm's price dispersion arising from its use of price discrimination for the base product.…”

Section: Literature Reviewmentioning

confidence: 99%

The Pricing Decision and Channel Choice of Upgraded Products in the Presence of Strategic Consumers

Shao

2021

Mathematical Problems in Engineering

View full text Add to dashboard Cite

Many dual-channel suppliers need to make appropriate strategies for their upgraded products in the presence of strategic consumers. This paper develops a two-period dynamic game framework to explore the optimal pricing and upgrade the channel choice when the supplier introduces new upgraded products to a market populated by strategic consumers. The results show that, under any upgrade channel choice, the strategic consumers’ behavior has impacts on supplier and retailer’s pricing decisions and reduces their profit. The supplier could choose appropriate upgrade channel to improve his performance according to the consumers’ patience and innovation level of upgrade products. The supplier should choose pure offline channel to upgrade products when the innovation level of upgraded product B is relatively small. With the sufficiently high innovation level, the supplier should adopt pure offline channel to upgrade products when consumers’ patience is low and uses dual-channel upgrade strategy when the patience is high enough.

show abstract

“…As such, rather than assuming that all remanufacturing is undertaken by the remanufacturers, this study allows the possibility that the OEM can undertake the remanufacturing in-house. In addition, Sun et al [24] developed two models that highlight the OEM's product upgrading strategy under scenarios where remanufacturing is undertaken in-house or outsourced; however, the aim and model setting of this study are quite different. For example, rather than highlighting house.…”

Section: Literature Reviewmentioning

confidence: 99%

“…For example, rather than highlighting h In this study, we consider a supply chain consisting of two members, t turer and the TPR. We assume that the product upgrading strategy can fend ization from remanufacturing, this study assumes that the interchangeable d efficient in both assembling for new production and disassembling for rema More specifically, Sun et al [24] provided an understanding on whether a product upgrading strategy impacts the potential cannibalization of new p from those of remanufactured ones. Unlike them, this study provides insight economic, environmental, and social benefits of remanufacturing depend o strategic choice of interchangeable design, highlighting that a strategy mus for both assembling for new production and disassembling for remanufactur a comparison of this study with related research is presented in Table 1 Table 1.…”

Section: Literature Reviewmentioning

confidence: 99%

Revenue and Cannibalization: The Effect of Interchangeable Design Confronted Remanufacturing Processing

Chen

Sun

2021

Processes

Self Cite

View full text Add to dashboard Cite

Traditional wisdom suggests that the interchangeable design in process system engineering, such as modularity or commonality design, can lower the manufacturing cost and act as a revenue driver. Moreover, the interchangeable design will be efficient in both assembling for new production and disassembling for remanufacturing. As such, interchangeable design confronted remanufacturing processing often involves a balance of revenue from cost drivers and cannibalization effects from remanufacturing. Therefore, this paper studies how the original equipment manufacturers’ (OEMs’) interchangeable design impacts the remanufacturing decisions, as well as the economy and environment. Specifically, we develop two theoretical models, in which an OEM makes a strategic choice relating to design interchangeability when the remanufacturing operations are undertaken by itself (Model O) or outsourced to third-party remanufacturers (Model T). This study finds that, although the optimal level of interchangeability related to the product design in Model T is lower than that in Model O, the optimal quantity of remanufactured products in the latter scenario is always higher. This suggests that remanufacturing outsourcing deters the OEM’s strategic choice on design interchangeability, which may be consistent with the fact that Lexmark makes its products less interchangeable to avoid remanufacturing from third-party remanufacturers (TPRs). Conversely, although the OEM is always less likely to outsource its remanufacturing operations to independent remanufacturers, remanufacturing outsourcing may be more beneficial for the environment, industry, and society. These key insights on the environmental groups or agencies suggest that remanufacturing outsourcing may be more beneficial for the environment, industry, and society and depends on the OEMs’ attitudes towards its profitability loss. Furthermore, to eliminate the above contrasting effects between the OEMs’ profitability and other issues, two possible remedies, including a revenue-sharing contract and subsidy-incentive mechanism, are provided to achieve a “win-win” situation.

show abstract

Sustainable Decisions on Product Upgrade Confrontations with Remanufacturing Operations

Cited by 12 publications

References 33 publications

Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing

Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing

The Pricing Decision and Channel Choice of Upgraded Products in the Presence of Strategic Consumers

Revenue and Cannibalization: The Effect of Interchangeable Design Confronted Remanufacturing Processing

Contact Info

Product

Resources

About