Environmentally Responsible Supply Chains

Atasu, Atalay

doi:10.1007/978-3-319-30094-8

Cited by 20 publications

(1 citation statement)

References 186 publications

(269 reference statements)

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“…Thus, we do not provide a comprehensive review of all studies here. Interested readers should refer to Guide and Van Wassenhove (2009) [29], Atasu et al (2016) [3] and references therein for a more detailed review of this field. Here, we plan to provide a short review of the literature on optimal pricing and production quantity decisions in remanufacturing.…”

Section: Introductionmentioning

confidence: 99%

Optimal production, pricing and government subsidy policies for a closed loop supply chain with uncertain returns

Chen¹,

Li²,

Wang³

et al. 2020

Journal of Industrial &Amp; Management Optimization

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This paper studies an original equipment manufacturer's (OEM's) optimal production and pricing decisions and the governments optimal subsidy level when the number of used products returning to the OEM is uncertain. The government aims to minimize its total expenditures but also attempt to achieve a given target collection level. We model the problem as an extended price-setting newsvendor model, which simultaneously incorporates supply uncertainty and external government influence. Moreover, we consider separately the cases of stochastic supplies with additive and multiplicative return uncertainty. We show that under the above settings, the governments optimal strategy is to provide only sufficient subsidies that cause its target to be met exactly. The government subsidies will mitigate the cost of remanufacturing and increase the total collection efforts of the government and the manufacturer. Moreover, the return uncertainty lowers both the manufacturers profits and selling price, whereas its effects on the governments optimal subsidies and the manufacturers optimal return efforts are insignificant. Therefore, the manufacturer is worse off but consumers are better off under the conditions of uncertain returns. By comparing the optimal decisions when the government is a central planner with the case of decentralized decision making, or comparing the arrangement in which the government provides subsidies directly to the manufacturer rather than to consumers, we find that the government subsidies would coordinate the supply chain only when its target collection level is high. Moreover, no essential differences exist between providing subsidies directly to the manufacturer and to consumers. Our results are robust under both the additive and multiplicative uncertainty models.

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Section: Introductionmentioning

confidence: 99%

Optimal production, pricing and government subsidy policies for a closed loop supply chain with uncertain returns

Chen¹,

Li²,

Wang³

et al. 2020

Journal of Industrial &Amp; Management Optimization

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Revenue management in a refurbishing duopoly with cannibalization

Kurdhi

Dabadghao

Fransoo

2022

J of Ops Management

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Refurbishing has promising economic potential, yet firms remain wary of its potential cannibalization effect on new product sales. Firms need to make strategic choices in competitive settings, involving varying brand strengths and collection constraints. The current study provides an empirical characterization of consumer behavior in such complex settings, which in turn informs an analytical model of optimal pricing policies. The results show that cannibalization (or switching) in a competitive environment has a linear relationship with price discounts, unlike the inverted U‐shaped relationship observed in monopolistic settings. The experimental results also highlight the relevance of cross‐cannibalization, especially for weaker firms (with low brand value) that compete with stronger firms to sell refurbished products. Our subsequent analytical results reveal how both competitors should adjust their refurbished product prices when internal and cross‐cannibalization coefficients change. Weaker firms should focus on surpassing stronger competitors in terms of collection and refurbishing efforts, which implies a predominant focus on operations. Finally, we show that refurbished product prices are a function of, and profits are concave in relation to, the number of core products collected by firms.

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When remanufacturing meets product quality improvement: The impact of production cost

Reimann

Zhang

2018

European Journal of Operational Research

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Environmentally Responsible Supply Chains

Cited by 20 publications

References 186 publications

Optimal production, pricing and government subsidy policies for a closed loop supply chain with uncertain returns

Optimal production, pricing and government subsidy policies for a closed loop supply chain with uncertain returns

Revenue management in a refurbishing duopoly with cannibalization

When remanufacturing meets product quality improvement: The impact of production cost

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