The impact of third-party remanufacturing on the forward supply chain: a blessing or a curse?

Jin, Minyue; Nie, Jiajia; Yang, Feng; Zhou, Yu

doi:10.1080/00207543.2017.1357860

Cited by 56 publications

(22 citation statements)

References 45 publications

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“…The analytical results confirmed that the manufacturer can collude with the e-retailer to resist the WEEE online recycler undertaking the resale business by setting a low wholesale price when the unit recycling cost is small. This finding is consistent with traditional wisdom (Jin et al [45]). Our comparison of the profits of the WEEE online recycler in the two models suggests that the online recycler prefers the self-run model to the agency model when the unit recycling cost is low intuitively.…”

Section: Discussionsupporting

confidence: 91%

“…If the wholesale price is sufficiently high, the second-hand market is so large that the WEEE online recycler's optimal response is to resell as many as possible, the recycling products quantity is bounded by the new product quantity sold by the e-retailer-i.e., scenario (3) of Lemma 1. We conclude from Lemma 1 that the resale decision of the WEEE online recycler is affected by the wholesale price of new products set by the manufacturer, and the manufacturer can collude with the e-retailer by setting a low wholesale price to prevent the WEEE online recycler from entering the consumer market [45]. From the point of sustainable development, a higher wholesale price is more conducive to increasing the amount of recycling.…”

Section: The Agency Modelmentioning

confidence: 88%

“…We assume that all collected products can be remanufactured and resold in the consumer market-that is q r = q o . This assumption can isolate the core research questions (i.e., selection of the resale channels) and simplifies the complexity of the problem to be analyzed (e.g.,Yan et al [33], Xiong et al [44], Jin et al [45]).…”

Section: Assumptionmentioning

confidence: 99%

“…Similar to the literature on the supply chain operation management (e.g., Yan et al [33], Zou et al [34], Jin et al [45]), we assume that all players are risk-neutral and profit-seeking and have common knowledge of the demand and cost information. We also assume the game with the following sequence.…”

Section: Assumptionmentioning

confidence: 99%

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Strategic Analysis of the Online Recycler’s Reselling Channel Selection: Agency or Self-Run

Guo

Nie

2019

Sustainability

Self Cite

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With the rapid development of the internet, many WEEE (Waste Electrical and Electronic Equipment) online recyclers have emerged and developed. They improve recycling efficiency significantly and bring hope for sustainable development. Unfortunately, few works in the literature are concerned about it, with many questions still unanswered. The WEEE online recyclers always face a challenge with regard to how to strategically design their reselling channel structure in fact. In this paper, we examined this challenge by two decision models: agency and self-run. We derived the performance of the self-run model and agency model by backward induction and then examined the desirability from different stakeholders' perspective. The results suggested that WEEE online recyclers prefer the self-run model to the agency model when the unit recycling cost is low and a conflict exists between the WEEE online recycler and e-retailer for the resale channel preference. Interestingly, the manufacturer shows consistent resale channel preference with the WEEE online recycler when the unit recycling cost is low. Our further analysis revealed that all players can agree on the agency model in a certain case. In addition, we found that the consumer surplus and the recovery ratio in the self-run model are always better than that in the agency model. Our work provides insight into the promotion of the WEEE online recycling industry and into the resale channel selection for online recyclers. The study also generates managerial insights for environmental sustainability.

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Section: Discussionsupporting

confidence: 91%

Section: The Agency Modelmentioning

confidence: 88%

Section: Assumptionmentioning

confidence: 99%

Section: Assumptionmentioning

confidence: 99%

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Strategic Analysis of the Online Recycler’s Reselling Channel Selection: Agency or Self-Run

Guo

Nie

2019

Sustainability

Self Cite

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“…Otherwise, the TPR prefers the outsourcing approach. More recently, Jin et al [16] developed a game theoretical model to revisit the impact of third-party remanufacturing on a forward supply chain, and showed that regardless of the OEM's remanufacturing capability, third-party remanufacturing could be beneficial to the OEM due to the supplier lowering the wholesale price as a response to the entry of the TPR. Huang et al [17] and Govindan et al [18] provide complete literature reviews that examined the outsourcing issues related to remanufacturing.…”

Section: Literature Reviewmentioning

confidence: 99%

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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Optimal production and financing portfolio strategies for a third‐party remanufacturing supply chain with capital constraint

Zhang

Chen

2022

Manage Decis Econ

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This paper considers a supply chain comprising one loss‐averse third‐party remanufacturer (TPR) and one capital‐constrained original equipment manufacturer (OEM), then investigates its optimal production and financing portfolio strategies when OEM finances through three strategies: pure bank loan (PBL), full delay‐in‐payment with bank loan (FDP‐with‐BL), and partial delay‐in‐payment with bank loan (PDP‐with‐BL). It is found that the optimal structure of PDP‐with‐BL strategy depends on the relative size of TPR's actual loss aversion and a threshold value. When TPR's loss aversion intensifies, PDP‐with‐BL gradually replaces FDP‐with‐BL as the most favorable financing strategy for third‐party remanufacturing. OEM prefers PBL strategy, while TPR and the supply chain prefer PDP‐with‐BL strategy.

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The impact of third-party remanufacturing on the forward supply chain: a blessing or a curse?

Cited by 56 publications

References 45 publications

Strategic Analysis of the Online Recycler’s Reselling Channel Selection: Agency or Self-Run

Strategic Analysis of the Online Recycler’s Reselling Channel Selection: Agency or Self-Run

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

Optimal production and financing portfolio strategies for a third‐party remanufacturing supply chain with capital constraint

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