IDEAS home Printed from https://ideas.repec.org/a/taf/tprsxx/v57y2019i21p6579-6592.html
   My bibliography  Save this article

Cost information sharing under competition in remanufacturing

Author

Listed:
  • He Huang
  • Qiuling Meng
  • Hongyan Xu
  • Yu Zhou

Abstract

Third-party remanufacturers (TPRs) enter the market and compete with original equipment manufacturers (OEMs). Because of multiple uncertainty of the remanufacturing process, the variable remanufacturing cost is random and its true value cannot be observed by OEMs. In this paper, we consider the competition between one TPR and one OEM, and then investigate incentives of cost information sharing. The remanufactured product quantity is constrained by the new product quantity. If the new production cost is low enough such that the optimal remanufactured product quantity is less than the optimal new product quantity, the TPR should always share cost information with the OEM so that their quantity decisions in equilibrium are more responsive to market conditions to avoid overproduction or underproduction. However, if the quantity constraint is binding, the TPR should not always share cost information; in this case, cost information sharing can allow the OEM to adjust the new product quantity to limit remanufacturing and hence be detrimental to the TPR. When the TPR does not voluntarily share cost information, we further examine the impacts of private information on the society and the environment, and then suggest the government to promote information sharing and subsidise the TPR under certain conditions.

Suggested Citation

  • He Huang & Qiuling Meng & Hongyan Xu & Yu Zhou, 2019. "Cost information sharing under competition in remanufacturing," International Journal of Production Research, Taylor & Francis Journals, vol. 57(21), pages 6579-6592, November.
  • Handle: RePEc:taf:tprsxx:v:57:y:2019:i:21:p:6579-6592
    DOI: 10.1080/00207543.2019.1567952
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/00207543.2019.1567952
    Download Restriction: Access to full text is restricted to subscribers.

    File URL: https://libkey.io/10.1080/00207543.2019.1567952?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhang, Guangxia & Gong, Yeming & Hong, Xianpei, 2022. "Free rider effect of quality information disclosure in remanufacturing," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 166(C).
    2. Dexiang Yang & Qin Yang & Lei Zhang, 2023. "Operational Decisions on Remanufacturing under the Product Innovation Race," Sustainability, MDPI, vol. 15(6), pages 1-18, March.
    3. Tianyi Guo & Chaonan Li & Yan Chen, 2022. "Remanufacturing Strategy under Cap-and-Trade Regulation in the Presence of Assimilation Effect," Sustainability, MDPI, vol. 14(5), pages 1-19, March.
    4. Jie Deng & Xuwei Luo & Mengsi Hu, 2022. "Implications of a Carbon Tax Mechanism in Remanufacturing Outsourcing on Carbon Neutrality," IJERPH, MDPI, vol. 19(9), pages 1-21, May.
    5. Kong, Junjun & Chua, Geoffrey A. & Yang, Feng, 2023. "Firms’ cooperation on recycling investments in a three-echelon reverse supply chain," International Journal of Production Economics, Elsevier, vol. 263(C).
    6. Chunmei Li & Tianjian Yang & Zijing Bian, 2023. "Does Environmental Education Always Contribute to Remanufacturing Supply Chain Development?," IJERPH, MDPI, vol. 20(6), pages 1-18, March.
    7. Stöckel, Jannis & Bom, Judith, 2022. "Revisiting longer-term health effects of informal caregiving: Evidence from the UK," The Journal of the Economics of Ageing, Elsevier, vol. 21(C).
    8. Yaqin Sun & Wenjing Shen & Jiacan Li & Yi Liao, 2024. "Competition in Remanufacturing with Asymmetric Demand Information," Sustainability, MDPI, vol. 16(2), pages 1-29, January.
    9. Liu, Jing & Xia, Senmao & Wang, Zhaoxing & Nie, Jiajia & Ameen, Nisreen & Yan, Cheng & Lim, Ming K., 2023. "How to balance economic profits and environmental protection: The impacts of cash hedging on remanufacturing firms," International Journal of Production Economics, Elsevier, vol. 258(C).
    10. Cao, Kaiying & Guo, Qiang & Xu, Yuqiu, 2023. "Information sharing and carbon reduction strategies with extreme weather in the platform economy," International Journal of Production Economics, Elsevier, vol. 255(C).
    11. Peng Liu & Rong Zhang & Bin Liu, 2023. "Information sharing under agency selling in an e-commerce supply chain with competing OEMs," Operational Research, Springer, vol. 23(3), pages 1-27, September.
    12. Niu, Baozhuang & Bao, Jinxiao & Cao, Bin, 2022. "Retailer's make-or-buy decision for remanufactured products under in-house yield uncertainty," Omega, Elsevier, vol. 110(C).
    13. Cassidey, Thomas B. & Freeman, Nickolas & Melouk, Sharif, 2022. "Leveraging concurrent sourcing for risk mitigation and pricing," Omega, Elsevier, vol. 113(C).
    14. Yongming Zhang & Weida Chen, 2022. "Optimal production and financing portfolio strategies for a third‐party remanufacturing supply chain with capital constraint," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(7), pages 3072-3094, October.
    15. Qiao, Haike & Su, Qin, 2021. "Distribution channel and licensing strategy choice considering consumer online reviews in a closed-loop supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 151(C).
    16. Li, Qiu-xiang & Ji, Hui-min & Huang, Yi-min, 2022. "The information leakage strategies of the supply chain under the block chain technology introduction," Omega, Elsevier, vol. 110(C).
    17. Mehmet Ali Soytaş & Damla Durak Uşar & Meltem Denizel, 2022. "Estimation of the static corporate sustainability interactions," International Journal of Production Research, Taylor & Francis Journals, vol. 60(4), pages 1245-1264, February.
    18. Zhou, Yu & Xiong, Yu & Jin, Minyue, 2021. "Less is more: Consumer education in a closed-loop supply chain with remanufacturing," Omega, Elsevier, vol. 101(C).
    19. Jin, Minyue & Li, Gendao & Reimann, Marc, 2022. "Team of rivals: How should original equipment manufacturers cooperate with independent remanufacturers via authorisation?," European Journal of Operational Research, Elsevier, vol. 296(3), pages 837-845.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:tprsxx:v:57:y:2019:i:21:p:6579-6592. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/TPRS20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.