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

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  • Xiong, Yu
  • Zhao, Quanwu
  • Zhou, Yu

Abstract

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.

Suggested Citation

  • Xiong, Yu & Zhao, Quanwu & Zhou, Yu, 2016. "Manufacturer-remanufacturing vs supplier-remanufacturing in a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 176(C), pages 21-28.
  • Handle: RePEc:eee:proeco:v:176:y:2016:i:c:p:21-28
    DOI: 10.1016/j.ijpe.2016.03.001
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    Cited by:

    1. Yu-Chung Tsao & Vu-Thuy Linh & Jye-Chyi Lu & Vincent Yu, 0. "A supply chain network with product remanufacturing and carbon emission considerations: a two-phase design," Journal of Intelligent Manufacturing, Springer, vol. 0, pages 1-13.
    2. Huang, Yanting & Wang, Zongjun, 2017. "Values of information sharing: A comparison of supplier-remanufacturing and manufacturer-remanufacturing scenarios," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 106(C), pages 20-44.
    3. Tong Shu & Qian Liu & Shou Chen & Shouyang Wang & Kin Keung Lai, 2018. "Pricing Decisions of CSR Closed-Loop Supply Chains with Carbon Emission Constraints," Sustainability, MDPI, Open Access Journal, vol. 10(12), pages 1-25, November.
    4. Jian Cao & Jiayun Zeng & Yuting Yan & Xihui Chen, 2020. "Research on an Enterprise Remanufacturing Strategy Based on Government Intervention," Energies, MDPI, Open Access Journal, vol. 13(24), pages 1-24, December.
    5. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, Open Access Journal, vol. 13(3), pages 1-32, January.
    6. Dingyue Zhang & Xuemei Zhang & Bin Shi & Jian Cao & Gengui Zhou, 2018. "Collection and Remanufacturing of Waste Products under Patent Protection and Government Regulation," Sustainability, MDPI, Open Access Journal, vol. 10(5), pages 1-22, May.
    7. Feng, Lipan & Govindan, Kannan & Li, Chunfa, 2017. "Strategic planning: Design and coordination for dual-recycling channel reverse supply chain considering consumer behavior," European Journal of Operational Research, Elsevier, vol. 260(2), pages 601-612.
    8. Liu, Zhi & Li, Kevin W. & Li, Bang-Yi & Huang, Jun & Tang, Juan, 2019. "Impact of product-design strategies on the operations of a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 124(C), pages 75-91.
    9. Emad Sane Zerang & Ata Allah Taleizadeh & Jafar Razmi, 2018. "Analytical comparisons in a three-echelon closed-loop supply chain with price and marketing effort-dependent demand: game theory approaches," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 20(1), pages 451-478, February.
    10. B. C. Giri & M. Masanta, 0. "A closed-loop supply chain model with uncertain return and learning-forgetting effect in production under consignment stock policy," Operational Research, Springer, vol. 0, pages 1-29.
    11. Yu-Chung Tsao & Vu-Thuy Linh & Jye-Chyi Lu & Vincent Yu, 2018. "A supply chain network with product remanufacturing and carbon emission considerations: a two-phase design," Journal of Intelligent Manufacturing, Springer, vol. 29(3), pages 693-705, March.
    12. Wei Yan & Junwu Chai & Zhifeng Qian & Sang-Bing Tsai & Hong Chen & Yu Xiong, 2018. "Operational Decisions on Remanufacturing Outsourcing Involved with Corporate Environmental and Social Responsibility—A Sustainable Perspective," Sustainability, MDPI, Open Access Journal, vol. 10(4), pages 1-18, April.
    13. Shen, Bin & Xu, Xiaoyan & Guo, Shu, 2019. "The impacts of logistics services on short life cycle products in a global supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 131(C), pages 153-167.
    14. Wang, Nengmin & He, Qidong & Jiang, Bin, 2019. "Hybrid closed-loop supply chains with competition in recycling and product markets," International Journal of Production Economics, Elsevier, vol. 217(C), pages 246-258.
    15. Weisheng Deng, 2019. "Does Remanufacturing Always Benefit the Manufacturer and Hurt the Supplier?," Sustainability, MDPI, Open Access Journal, vol. 11(6), pages 1-13, March.
    16. Maiti, T. & Giri, B.C., 2017. "Two-way product recovery in a closed-loop supply chain with variable markup under price and quality dependent demand," International Journal of Production Economics, Elsevier, vol. 183(PA), pages 259-272.
    17. Reimann, Marc & Xiong, Yu & Zhou, Yu, 2019. "Managing a closed-loop supply chain with process innovation for remanufacturing," European Journal of Operational Research, Elsevier, vol. 276(2), pages 510-518.
    18. Wu, Xiaole & Zhou, Yu, 2019. "Buyer-specific versus uniform pricing in a closed-loop supply chain with third-party remanufacturing," European Journal of Operational Research, Elsevier, vol. 273(2), pages 548-560.
    19. He, Qidong & Wang, Nengmin & Yang, Zhen & He, Zhengwen & Jiang, Bin, 2019. "Competitive collection under channel inconvenience in closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 275(1), pages 155-166.
    20. Xiaofeng Long & Tong Shu & Shou Chen & Shouyang Wang & Kin Keung Lai & Yan Yang, 2017. "Strategy Analysis of Recycling and Remanufacturing by Remanufacturers in Closed-Loop Supply Chain," Sustainability, MDPI, Open Access Journal, vol. 9(10), pages 1-29, October.
    21. Chai, Qiangfei & Xiao, Zhongdong & Lai, Kee-hung & Zhou, Guanghui, 2018. "Can carbon cap and trade mechanism be beneficial for remanufacturing?," International Journal of Production Economics, Elsevier, vol. 203(C), pages 311-321.

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