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Manufacturer-remanufacturing vs supplier-remanufacturing in a closed-loop supply chain

Xiong, Yu, Zhao, Quanwo and Zhao, Yu (2016) Manufacturer-remanufacturing vs supplier-remanufacturing in a closed-loop supply chain International Journal of Production Economics, 176. pp. 21-28.

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Remanufacturing at the component level could be performed by either a manufacturer or a supplier. In this paper, we analyze the performance of manufacturer-remanufacturing and supplier-remanufacturing in a decentralized closed-loop supply chain, and examine their desirability from different stakeholder perspectives. We find that the manufacturer may engage in remanufacturing of used components even if remanufacturing is costlier than traditional manufacturing; given remanufacturing is costlier, the manufacturer may forgo remanufacturing due to a marginal increase in consumer willingness-to-pay for the remanufactured product. If the unit remanufacturing cost is high enough, the manufacturer and consumers prefer manufacturer-remanufacturing, while the supplier and the environment prefer supplier-remanufacturing; otherwise, the manufacturer, the supplier, and consumers prefer supplier-remanufacturing, while the environment׳s preference is contingent on the environmental impact discount for the remanufactured product. Finally, the key findings are distilled into a roadmap to guide the development of remanufacturing.

Item Type: Article
Divisions : Faculty of Arts and Social Sciences > Surrey Business School
Authors : Xiong, Yu, Zhao, Quanwo and Zhao, Yu
Date : 8 March 2016
DOI : doi.10.1016/j.ijpe.2016.03.001
OA Location :
Copyright Disclaimer : © 2016 The Authors. Published by Elsevier B.V.
Depositing User : James Marshall
Date Deposited : 24 Feb 2020 15:31
Last Modified : 24 Feb 2020 15:31

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