Impact of the Quality of Returned-Used Products on the Optimal Design of a Manufacturing/Remanufacturing System under Carbon Emissions Constraints

The closed-loop supply chain management model is an effective way to promote sustainable economic development and environmental protection. Increasing the sales volume of remanufactured products to stimulate green growth is a key issue in the development of closed-loop supply chains. By designing an effective warranty strategy, customer’s perceived value can be enhanced and market demand can be stimulated. This study cuts through the warranty period of closed-loop supply chain products. Based on the perspective of consumer behavior, game theory is used to construct the optimal decision-making model for closed-loop supply chains. The optimal warranty decision making for new products and remanufactured products under centralized and decentralized decision-making models is discussed. Further, the impact of the closed-loop supply chain system with warranty services and the design of contract coordination is also shown. We show that consumer preference has a positive impact on the sales of remanufactured products and the profits of enterprises; with the extension of the new product and remanufacturing warranty period, the profit of the supply chain system first increases and then decreases, and the value is maximized at the extreme point in the manufacturer-led decision-making model. Furthermore, the leader gains higher profits with bargaining power, but the profit of the supply chain system under decentralized decision model is less than that of the centralized decision model, reflecting the double marginalization effect. The revenue sharing contract and the two-charge contract designed in this study coordinate the closed-loop supply chain system with warranty services, so that the member companies in the supply chain can achieve Pareto improvement.

Section: Sustainable Development and Closed-loop Supply Chain Managementmentioning

confidence: 99%

Warranty Period Decision and Coordination in Closed-Loop Supply Chains Considering Remanufacturing and Consumer Behavior

Zhu

2019

“…The first related area of literature is on the coopetition relationship in closed-loop supply chains. For example, Turki and Rezg [10] provided an optimal design for a manufacturing/remanufacturing system that differentiates between new and remanufactured products and sorts the used products into three quality levels and determined the optimal storage capacities and production decisions regarding new and remanufactured products while considering carbon emissions. Li et al [22] examine the influences of vertical and horizontal cooperation models on the optimal decisions and performance of a low-carbon closed-loop supply chain with a manufacturer and two retailers and found that the completely centralized model was best in all optimal decision results among all models.…”

Section: Literature Reviewmentioning

confidence: 99%

A Sustainability Analysis on Retailer’s Sales Effort in A Closed-Loop Supply Chain

Yang

Zhang

et al. 2018

With the development of the Internet, many brand name manufacturers including Apple, Lenovo, and Canon offer remanufactured products through their official website. Confronting the competition from remanufactured products that are available from the manufactured-owned channel, more and more retailers have recognized that customer service level is one of the most important performance metrics and have aggressively attempted to obtain larger market shares by providing high levels of post-sale services. Although numerous researchers have studied various competitive strategies in remanufacturing, to the best of our knowledge, there is little research highlighting whether and how economic performance and sustainability issues related to remanufacturing operations are affected by the retailer's service levels. In this paper, we fill this gap by developing two models for the closed-loop supply chain where all remanufactured products are available from the manufactured-owned channel, while the equilibrium behavior of the retailer can be characterized under two possible scenarios: (1) Confronting the cannibalization from direct channels where the retailer only responds on prices (i.e., Model P); or (2) on providing competitive prices and high service levels for new products (i.e., Model S). Our analysis suggests that, from managers' perspective, if the manufacturers care more about economic benefits, encouraging the retailer to provide higher levels of post-sale services is a beneficial strategy. If they are more concerned with environmental performance, Model P is preferred. However, from the angle of environmental groups and agencies, if the level of eco-centrism is too pronounced, though Model S has a greater profitability for both parties, a more significant welfare loss due to environmental hazard is perceived by the society. As a result, besides avoiding indulging in overproducing on new products, environmental groups and agencies should take emissions trading or taxation into consideration to stimulate remanufacturing operations.

“…Nevertheless, practitioners with expertise in decision-making methodologies can also use preference ranking organization method for enrichment evaluation (PROMETHEE) [65,66], system dynamics [67,68], or optimization methods [69,70] to make the final decision.…”

Section: Decision-makingmentioning

confidence: 99%

A Sustainable Decision-Making Framework for Transitioning to Robotic Welding for Small and Medium Manufacturers

Epping

Zhang

2018

Small and medium-sized enterprises (SMEs) face challenges in implementing industrial robotics in their manufacturing due to limited resources and expertise. There is still good economic potential in using industrial robotics, however, due to manufacturers leaning toward newer technology and automated processes. The research on sustainability decision-making for transitioning a traditional process to a robotic process is limited for SMEs. This study presents a systemic framework for assessing the sustainability of implementing robotic techniques in key processes that would benefit SMEs. The framework identifies several key economic, technical, and managerial decision-making factors during the transition phase. Sustainability assessments, including cost, environmental impact, and social impact, are used in the framework for engineers and managers to evaluate the technical and sustainability trade-offs of the transition. A case study was conducted on a typical US metal fabrication SME focusing on transitioning a shielded metal arc welding (SMAW) process to a robotic gas metal arc welding (GMAW) process. A sustainability assessment was conducted following the framework. The results suggest that the transition phase involves numerous factors for engineers and managers to consider and the proposed framework will benefit SMEs by providing an analytical method for industrial robotics implementation decision-making.