Coordination and Enhancement Schemes for Quick Response Mass Customization Supply Chains With Consumer Returns and Salvage Value Considerations

Guo, Shu; Choi, Tsan‐Ming; Shen, Bin; Jung, Sojin

doi:10.1109/tsmc.2017.2766207

Cited by 16 publications

(4 citation statements)

References 57 publications

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“…Trentin et al (2015) empirically examined the intrinsic link between green sustainable management and MC. Some studies also explored operational issues in the MC supply chain, such as coordination of the MC supply chain (Guo et al, 2020) and supply chain finance for MC project (Guo & Liu, 2020). The abovementioned research only focuses on forward‐only MC supply chain, whereas this paper extends MC operations to a CLSC including both forward and reverse logistics.…”

Section: Literature Reviewmentioning

confidence: 99%

Managing mass customization products with modular design for recycling in a closed‐loop supply chain

Jiang

2023

Manage Decis Econ

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Investing in the modular architecture design for mass customization (MC) products cannot only enable product variety, thereby improving MC ability to cope with consumer individual needs, but also increase the product interchangeability, thereby reducing the recycling and remanufacturing costs. This paper considers a closed‐loop supply chain (CLSC) with MC, in which the manufacturer sells the new, modular MC products via the retailer and also actively recycles the used ones for remanufacturing. We study the optimal modularity level for new MC products and the best recycling channel for used MC products in a CLSC. One centralized and two decentralized recycling decision models are formulated, and then the equilibrium solutions among proposed models are compared and analyzed. The government subsidy and channel leadership are further discussed in extension. Different from the traditional view that outsourcing the recycling activity to retailer is best because of its proximity to consumers, our results suggest that the manufacturer directly recycling used MC products can be optimal in terms of modularity level, recycling rate, supply chain profits, total social surplus, and decision‐making speed.

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Section: Literature Reviewmentioning

confidence: 99%

Managing mass customization products with modular design for recycling in a closed‐loop supply chain

Jiang

2023

Manage Decis Econ

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“…Shao (2020) assessed an integrated firm that balances product lines between customized and standard products and showed that a high-level MC system may not necessarily improve the firm's profits. Guo et al (2020) investigated supply chain coordination with MC and utilized a two-part tariff contract to achieve win-win coordination with different levels of flexibility. Meanwhile, Jost and Süsser (2020) studied the effect of MC in a manufacturer's production process with opportunity costs of buying standardized products and observed that selling MC products is profitable for the manufacturer.…”

Section: Supply Chain Integration With MCmentioning

confidence: 99%

Supply chain integration in mass customization

et al. 2023

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New technology such as 3D printing, robotic manufacturing, and the Internet of things can shorten the production time of mass customization (MC) products, enhance the self-design fun of consumers, and improve channel integration connectivity. In this study, we examine the impact of MC waiting time and self-design fun from the purchase of MC products on supply chain integration. We consider a supply chain consisting of one manufacturer, one retailer, and one customizer. The manufacturer produces and sells standardized products through the retailer, whereas the customizer sells customized products to consumers directly. The customizer can decide whether to integrate with the manufacturer (i.e., manufacturer–customizer integration) or with the retailer (i.e., retailer–customizer integration). We find that manufacturer–customizer integration can achieve a win–win–win outcome for all three supply chain members when the MC waiting time is within a moderate range and the probability of consumers being satisfied with the product quality is high, but retailer–customizer integration cannot achieve such an outcome, as the manufacturer will not be benefited if it does not participate in the integration. Furthermore, integration reduces the customizer’s investment in the level of self-design fun, which implies that the negative effect owing to the low level of self-design fun in the supply chain integration can be compensated by the competition mitigation effect owing to supply chain integration. With endogenized self-design fun, the achievability of a win–win–win outcome for all three supply chain members in the manufacturer–customizer integration will remain unchanged.

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“…Pasternack () and Emmons and Gilbert (1998) studied manufacturers’ return strategies for retailers’ unsold products. Then some scholars investigated no‐reason‐full‐return policies (Davis et al., ; Ferguson et al., ; Shulman et al., ; Geng et al., ; Borenich et al., ; Guo et al., ). For instance, Cheng et al.…”

Section: Literature Reviewmentioning

confidence: 99%

Whether a retailer should enter an e‐commerce platform taking into account consumer returns

Cao

et al. 2020

Int Trans Operational Res

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Considering consumers are increasingly shopping online nowadays and the online sales market is dominated by e‐commerce giants, traditional retailers need to choose whether to enter e‐commerce platforms. Moreover, traditional retailers need to determine whether to offer offline return services considering online return services are very popular. To address these challenges, we explore a retailer's optimal offline return strategy and channel choice of whether or not to enter a platform in the contexts of symmetric information and asymmetric information, respectively. We present conditions for the retailer to share information. Interestingly, we find that the retailer in some conditions has no motivation to improve customer satisfaction rate of offline store. Most important, we find that the retailer's channel choice depends on the magnitude of the annual service fee that is affected by offline return strategy and asymmetric information, and the offline return strategy depends on the magnitude of the average residual value of returned products.

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Coordination and Enhancement Schemes for Quick Response Mass Customization Supply Chains With Consumer Returns and Salvage Value Considerations

Cited by 16 publications

References 57 publications

Managing mass customization products with modular design for recycling in a closed‐loop supply chain

Managing mass customization products with modular design for recycling in a closed‐loop supply chain

Supply chain integration in mass customization

Whether a retailer should enter an e‐commerce platform taking into account consumer returns

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