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Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective

Author

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  • Xiaodong Zhu

    (School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China)

  • Lingfei Yu

    (School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China)

  • Ji Zhang

    (Faculty of Health, Engineering and Sciences, University of Southern Queensland, Toowoomba, QLD 4350, Australia)

  • Chenliang Li

    (School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China)

  • Yizhao Zhao

    (School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China)

Abstract

The remanufacturing warranty strategy has become an effective mechanism for reducing consumer risk and stimulating market demand in closed-loop supply chain management. Based on the characteristics of consumers’ behavior of purchase decisions, this paper studies the warranty decision model of remanufacturing closed-loop supply chain under the Stackelberg game model. The present study discussed and compared the decision variables, including remanufacturing product pricing, extended warranty service pricing, warranty period and supply chain system profit. The research shows that consumers’ decision-making significantly affirms the dual marginalization effect of the supply chain system while significantly affecting the supply chain warranty decision; the improved revenue sharing contract and the two charge contracts respectively coordinates the manufacturer-led and retail-oriented closed-loop supply chain system, which effectively implements the Pareto improvement of the closed-loop supply chain system with warranty services. In the present study, the model is verified and analyzed by numerical simulation.

Suggested Citation

  • Xiaodong Zhu & Lingfei Yu & Ji Zhang & Chenliang Li & Yizhao Zhao, 2018. "Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    • Handle: RePEc:gam:jsusta:v:10:y:2018:i:12:p:4738-:d:189978
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    References listed on IDEAS

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    Cited by:

    1. Xiaodong Zhu & Lingfei Yu, 2019. "The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior," Sustainability, MDPI, vol. 11(5), pages 1-24, March.
    2. Shaojian Qu & Hui Yang & Ying Ji, 2021. "Low-carbon supply chain optimization considering warranty period and carbon emission reduction level under cap-and-trade regulation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18040-18067, December.
    3. Xuemei Zhang & Jiawei Hu & Suqin Sun & Guohu Qi, 2022. "Extended Warranty Strategy and Its Environment Impact of Remanufactured Supply Chain," IJERPH, MDPI, vol. 19(3), pages 1-25, January.
    4. Chen Liang & Dongshi Sun & Danlan Xie, 2023. "Identifying Waste Supply Chain Coordination Barriers with Fuzzy MCDM," Sustainability, MDPI, vol. 15(6), pages 1-23, March.

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