Accurate Response with Refurbished Consumer Returns

Reimann, Marc

doi:10.1111/deci.12150

Cited by 34 publications

(8 citation statements)

References 46 publications

(67 reference statements)

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“…Nonrefurbishable items are sold as e‐waste to a material recycler (Yoo & Kim, 2016). All refurbished products have a constant unit cost of refurbishing, and all nonrefurbishable products have a constant salvage value (Reimann, 2016). Transportation, cleaning, inspection, and other indirect charges are all included in the unit cost of refurbishing. Shortages are not permitted (Mishra et al, 2020).…”

Section: Model Developmentmentioning

confidence: 99%

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Analyzing coordination strategy of circular supply chain in re‐commerce industry: A game theoretic approach

et al. 2022

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The circular economy seeks to reduce waste by reusing, refurbishing, and recycling used products. It increases the resource value of used goods. In this study, we proposed a circular business gap exploiter model in which a re-commerce company exploits residual value in product systems utilization. A game-theoretic approach is used to investigate the coordination problem of a two-echelon circular supply chain with e-commerce and re-commerce companies. In addition, we proposed a coordinated structure under the revenue sharing contract and the two-part tariff contract through Nash negotiation to address the coordination problems. We compared the centralized and decentralized model findings and observed that the decentralized model shows potential for improvement. We showed model's applicability through numerical examples and sensitivity analysis to indicate how parameters such as wholesale price and retail price affect channel decisions and member profits. The results show that a two-part tariff contract may efficiently coordinate the circular supply chain. The study shows that under a circular business model, two tactics may be applied. These are extending product value and extending resource value.

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Section: Model Developmentmentioning

confidence: 99%

“…4. All refurbished products have a constant unit cost of refurbishing, and all nonrefurbishable products have a constant salvage value (Reimann, 2016). Transportation, cleaning, inspection, and other indirect charges are all included in the unit cost of refurbishing.…”

Section: Assumptionsmentioning

confidence: 99%

Analyzing coordination strategy of circular supply chain in re‐commerce industry: A game theoretic approach

et al. 2022

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“…Some papers, e.g. Li et al (2011) or Reimann (2016), assume that refurbished consumer returns are perfect substitutes for new products, which is not our setting. More closely related is research where refurbished consumer returns are imperfect substitutes for new products.…”

Section: Literature Reviewmentioning

confidence: 99%

Should a manufacturer sell refurbished returns on the secondary market to incentivize retailers to reduce consumer returns?

Borenich

Dickbauer

Reimann

et al. 2020

European Journal of Operational Research

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Consumer electronics returns are typically returned by the retailer to the manufacturer for a full refund of the wholesale price. This practice does not sufficiently motivate the retailer to reduce the volume of returns. Different mechanisms have been proposed to incentivize the retailer to reduce returns, such as a reduced wholesale price for returns below a target, but they do not consider the subsequent disposition of returns. The high value of returns usually justifies refurbishment and resale. We study how competition between refurbished returns sold by the manufacturer and new products sold at the retailer affects retailer behavior. We find that the retailer never exerts more effort to reduce returns when faced with competition through the online store. The manufacturer's profitability, however, is always higher with an online store. The online store is also preferable to a strategy where the manufacturer only partially refunds the retailer for returns.

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“…For instance, many fashion companies such as Uniqlo, Zara and Topshop, have adopted the quick response system to reduce market demand uncertainty [23,28]. As a result, the production capacity of the upstream supplier and the sales quantity of the downstream retailer are closer to real market demand [12,31].…”

Section: Introductionmentioning

confidence: 99%

Coordinating a fresh-product supply chain with demand information updating: Hema Fresh O2O platform

Yang

Peng

2021

RAIRO-Oper. Res.

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Motivated by Hema Fresh's new-retail case, we study the coordination of a two-echelon fresh-product supply chain consisting of a single supplier and a single retailer. Due to a long production lead time, the supplier has to make production decision in advance based on early demand information. The market demand can be updated during the supplier's production lead time. Hence, the retailer would make order decision according to the latest demand information. Incorporating risk-sharing mechanism of overproduction and overstock, we propose a novel bi-directional risk-sharing contract to coordinate such a supply chain with demand information updating. We construct a two-stage optimization model in which the supplier first decides production quantity, and then the retailer decides final order quantity not exceeding the supplier’s initial production. In both the centralized and decentralized systems, we analytically derive the unique equilibrium of production and order decisions in a Stackelberg supplier-led game. We prove that the proposed contract can realize supply chain perfect coordination and explore how the proposed contract affects the members'decisions. The theoretical results show that, by turning the risk-sharing proportions, the supply chain profit can be arbitrarily split between the members, which is a desired property for supply chain coordination. Compared with the single risk-sharing contract, the proposed contract results in a greater supply chain profit and achieves Pareto improvement for both members. Furthermore, we also explore how the risk preference and negotiating power affect the contract selection and the additional profit allocation of the supply chain. Numerical examples are presented to verify our theoretical results.

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Accurate Response with Refurbished Consumer Returns

Cited by 34 publications

References 46 publications

Analyzing coordination strategy of circular supply chain in re‐commerce industry: A game theoretic approach

Analyzing coordination strategy of circular supply chain in re‐commerce industry: A game theoretic approach

Should a manufacturer sell refurbished returns on the secondary market to incentivize retailers to reduce consumer returns?

Coordinating a fresh-product supply chain with demand information updating: Hema Fresh O2O platform

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