Competition in remanufacturing and the effects of government subsidies

Mitra, Supriya; Webster, Scott

doi:10.1016/j.ijpe.2007.02.042

Cited by 417 publications

(193 citation statements)

References 7 publications

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“…Webster and Mitra, 2007;Parlikad and McFarlane, 2007;Subramanian et al, 2009 Intellectual property protection Martin and Guide, 2010 Market issues Customer demand Green image of remanufactured products Geyer and Jackson, 2004;Michaud and Llerena, 2006;Parlikad and McFarlane, 2007 Product Cannibalization Atasu et al, 2010;Ferrer and Swaminathan, 2006;Mitra and Webster, 2008;Hazen et al, 2012;Michaud and Llerena, 2006 …”

Section: Discussionmentioning

confidence: 99%

“…Other incentives for remanufacturing implementation include government tax reductions and subsidies (Mitra and Webster, 2008). Subsidies compensate for the cost of assessing, dissembling, matching and reassembling processes and also offset the initial cost of emergent technologies which are high during the initial period but less significant once economies of scale are reached (Willis, 2010).…”

Section: Financialmentioning

confidence: 99%

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Viability of remanufacturing practice: a strategic decision making framework for Chinese auto-parts companies

Abdulrahman

Subramanian

Liu

et al. 2015

Journal of Cleaner Production

114

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Remanufacturing is a sustainable and proven profitable practice in the western world.Research on remanufacturing practices is relatively unexploited in China, despite being the "global factory" and both the world's largest automobile manufacturer and vehicle market.The increasing amount of automotive output and End-of-Life vehicles (ELVs) in China provides Chinese auto-parts companies with significant potential for environmentally conscious manufacturing and product recovery. Using case studies, we have investigated the status of remanufacturing practices, key determinants for strategic decision making to remanufacture in-house, outsource remanufacturing and/or not to engage in remanufacturing in Chinese auto parts firms using an analytical hierarchy process (AHP). This study suggests that Chinese firms are keen to adopt remanufacturing practice in-house compared to outsourcing despite a lack of technical and managerial capabilities.Key words: Remanufacturing, automotive, China, strategic decision making, analytical hierarchy process (AHP) INTRODUCTIONThe unprecedented and sometimes wasteful use of the environment as the natural provider of resources and sink for discarded end-of-life/end-of-use products and waste is proving to be unsustainable. There is increasing realization that manufacturing needs to produce more with less and different raw materials, to be ethical and sustainable. Achieving this will require materials wastage to be reduced and production to more closely match demand. This is why manufacturing firms, especially original equipment manufacturers (OEMs) and their suppliers, are under increasing pressure from stakeholders, including regulators, customers and employees to produce ethically, reuse/recycle, remanufacture, and/or to safely discard 3 their waste in accordance with the absorptive and regenerative capacity of the planet (Barker and Zabinsky, 2011).Of the many sustainable strategies, tools and techniques developed over the years aimed at improving productivity and economic longevity of manufacturing businesses, remanufacturing plays an important role. Remanufacturing has resulted in increased profits and market share for manufacturers in Western countries (Jayaraman and Luo, 2007;Giannetti, 2012). Remanufacturing further benefits businesses in terms of cost saving from reduced resource requirements, through assets recovery and reusing/recycling, cost savings from not using landfills, expanded product life cycle, increased employment rate and improved brand image (Sarkis, 2010;Kapetanopoulou and Tagaras, 2011;Zhang, et al., 2011).The automotive industry is one of the leading industries in remanufacturing and product recovery strategy, with 70% of all remanufacturing companies being in the automotive sector (Steinhilper, 2011;Zhang, et al., 2011). Furthermore, of all major products that are being The major motivation for this study is to (i) develop a remanufacturing decision-making framework for the Chinese auto-parts manufacturers' strategic decisions to either engage in the rem...

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Section: Discussionmentioning

confidence: 99%

Section: Financialmentioning

confidence: 99%

Viability of remanufacturing practice: a strategic decision making framework for Chinese auto-parts companies

Abdulrahman

Subramanian

Liu

et al. 2015

Journal of Cleaner Production

114

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“…Even though a few prior studies such as [8][9][10] consider the impact of government subsidies on the remanufacturing activities, the channel structure of remanufacturing supply chains is given and no channel choice for the remanufacturer is considered. Furthermore, the lower customers' willingness to pay for remanufactured products implies that the remanufacturer is relatively less competitive in markets like China than those in the developed countries.…”

Section: Introductionmentioning

confidence: 99%

Cooperation or Competition? Channel Choice for a Remanufacturing Fashion Supply Chain with Government Subsidy

et al. 2014

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Abstract:In this paper, we address the problem of choosing an appropriate channel for the marketing channel structure of remanufactured fashion products. To be specific, we consider a remanufacturer who has two options for selling the products: (1) provide the remanufactured products to a manufacturer, then the manufacturer sells both new products and the remanufactured products to customers, and (2) sell the remanufactured products directly to customers. Because of the relatively low acceptance of remanufactured products and environment consciousness of customers in developing countries like China, we model the two scenarios as decentralized remanufacturing supply chains, with the manufacturer being the Stackelberg leader and the government offering subsidy to the remanufacturer to incentivize remanufacturing activities. We find that the subsidy can incentivize remanufacturing activity regardless of the remanufacturer's channel choice. A "too high" or "too low" subsidy makes the remanufacturer compete with the manufacturer, and an intermediate subsidy results in cooperation between the two members of the remanufacturing supply chain. OPEN ACCESSSustainability 2014, 6 7293 Meanwhile, if the customers' acceptance for remanufactured products is higher, the remanufacturer will be more likely to compete with the manufacturer. However, the remanufacturer's optimal channel choice may be inefficient in the sense of social welfare and environmental protection.

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“…5 Second, there are the actual cost savings experienced by firms. To see this, consider the following three examples from Mitra and Webster (2008). First, these researchers have noted that in 1996,…”

Section: Overviewmentioning

confidence: 99%

A Game Model of New and Remanufactured Goods, Brown and Green Consumers, and Market Share Dominance

Batabyal

Beladi

2016

J. Quant. Econ.

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A game model of new and remanufactured goods, brown and green consumers, and market share dominance www.econstor.eu We thank the Editor Bibhas Saha and two anonymous reviewers for their helpful comments on a previous version of this paper. In addition, Batabyal acknowledges sabbatical funding from RIT and financial support from the Gosnell endowment, also at RIT. The usual disclaimer applies. The brown ( green) consumers are not (are) environmentally conscious and hence they prefer to buy a new (remanufactured) good denoted by and respectively. By strategically purchasing or not purchasing the and the goods, the brown and the green consumers attempt to create a dominant market share for their preferred good. In this setting, we study three issues. First, we delineate the game between the brown and the green consumers in normal form and then solve for the Nash equilibrium when and Second, we find all the Nash equilibria of this game between brown and green consumers when is an even number and . Finally, we increase the cost of purchasing the new and the remanufactured goods and then study how this increase affects the answers obtained for the above two issues.

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Competition in remanufacturing and the effects of government subsidies

Cited by 417 publications

References 7 publications

Viability of remanufacturing practice: a strategic decision making framework for Chinese auto-parts companies

Viability of remanufacturing practice: a strategic decision making framework for Chinese auto-parts companies

Cooperation or Competition? Channel Choice for a Remanufacturing Fashion Supply Chain with Government Subsidy

A Game Model of New and Remanufactured Goods, Brown and Green Consumers, and Market Share Dominance

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