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Extended warranty service strategy in green supply chain with asymmetric demand forecast

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  • Zhibing Lin

    (Fuzhou University)

  • Haonan Xu

    (Fuzhou University)

  • Junchao Zhang

    (Fuzhou University)

Abstract

This study examines the interaction between extended warranty service and demand forecast information sharing in a green supply chain. Key findings indicate: (1) The retailer shares demand forecast information only when consumer green sensitivity (CGS) exceeds a threshold, creating mutual benefits but requiring caution against the ‘precision trap’. (2) Although the paid extended warranty service (PEWS) is only beneficial to the retailer if and only if CGS is high or PEWS’s period is short, it is always beneficial to the manufacturer. (3) Information sharing incentivizes the manufacturer to offer PEWS, though PEWS positively influences information sharing only when the forecast expectation of manufacturer falls below that of retailer. (4) Comparative analysis reveals that free extended warranty service outperforms PEWS when CGS is low and PEWS’s period is moderate. The findings in this paper provide valuable references for the extended warranty service and information sharing decisions of green supply chain members.

Suggested Citation

  • Zhibing Lin & Haonan Xu & Junchao Zhang, 2025. "Extended warranty service strategy in green supply chain with asymmetric demand forecast," Operational Research, Springer, vol. 25(4), pages 1-27, December.
    • Handle: RePEc:spr:operea:v:25:y:2025:i:4:d:10.1007_s12351-025-00971-9
    DOI: 10.1007/s12351-025-00971-9
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