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Manufacturer encroachment on a closed‐loop supply chain with design for remanufacturing

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  • Yufei Hu
  • Lianghua Chen
  • Yingying Chi
  • Bowen Song

Abstract

This paper examines the manufacturer encroachment on both forward and reverse flows of a closed‐loop supply chain with two different design for remanufacturing (DfRem) approaches. We show that both DfRem approaches lead to Pareto improving encroachments under certain conditions. Design for modularity (DfM) compensates for the retailer's encroachment loss through dual positive spillover effects via lower wholesale price and higher buyback price to selling and collecting activities. Design for durability (DfD) simultaneously expands the retailer's sales and stimulates offline collecting via buyback price reimbursement. DfD outperforms DfM in achieving more profitable win‐win encroachments.

Suggested Citation

  • Yufei Hu & Lianghua Chen & Yingying Chi & Bowen Song, 2022. "Manufacturer encroachment on a closed‐loop supply chain with design for remanufacturing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1941-1959, September.
    • Handle: RePEc:wly:mgtdec:v:43:y:2022:i:6:p:1941-1959
    DOI: 10.1002/mde.3501
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    References listed on IDEAS

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    Cited by:

    1. Wang, Jian & He, Shulin, 2023. "Government interventions in closed-loop supply chains with modularity design," International Journal of Production Economics, Elsevier, vol. 264(C).
    2. Jun Yao & Dongyan Chen & Hui Yu, 2022. "Decision-Making and Coordination of Remanufacturing Closed-Loop Supply Chain with PIR under the Different Government Subsidy Strategies," Sustainability, MDPI, vol. 14(23), pages 1-21, December.
    3. Yan Zhou & Miao Hou & Kar-Hung Wong, 2023. "The Optimal Remanufacturing Strategy of the Closed-Loop Supply Chain Network under Government Regulation and the Manufacturer’s Design for the Environment," Sustainability, MDPI, vol. 15(9), pages 1-34, April.

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