Quantity decisions in a supply chain with early returns remanufacturing

Li, Xiang; Li, Yongjian; Cai, Xiaoqiang

doi:10.1080/00207543.2011.565085

Cited by 24 publications

(12 citation statements)

References 30 publications

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“…In Li et al. () all the supply decisions are taken under demand uncertainty, that is, returns are not utilized to react to improved demand information. Moreover, the returns are independent of the new production decision.…”

Section: Related Workmentioning

confidence: 96%

“…Further, the model differs from Li et al. () and Akcay et al. () in that another disposition option is available.…”

Section: Related Workmentioning

confidence: 99%

“…Akcay, Boyaci, & Zhang (2013) address the disposition decision of consumer returns by a retailer under imperfect substitutability. Similarly as in Li et al (2011), the disposition options of the retailer are either to resell returned units on a secondary market or to recycle returned units. Results show that the price of new products increases and correspondingly stocking levels fall when an MBG with resale on a secondary market is introduced.…”

Section: Product Returnsmentioning

confidence: 99%

“…However, in this setting the firm is considered to be a price taker. Further, the model differs from Li et al (2011) and Akcay et al (2013) in that another disposition option is available. Returned units, which depend on the previous new production decision, could be used for satisfaction of warranty claims.…”

Section: Product Returnsmentioning

confidence: 99%

“…The work presented in Reimann and Zhang (2013) captures demand uncertainty, but no reaction to an information update is modeled. In Li et al (2011) all the supply decisions are taken under demand uncertainty, that is, returns are not utilized to react to improved demand information. Moreover, the returns are independent of the new production decision.…”

Section: Product Returnsmentioning

confidence: 99%

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Accurate Response with Refurbished Consumer Returns

Reimann

2015

Decision Sciences

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Centering around anticipative and reactive capabilities of firms, accurate response is an important supply‐side strategy to deal with demand uncertainty. Clearly, the structure of the possible reaction will crucially influence the optimal anticipative decision making. In this article, we extend the existing literature in this area by including a new reactive capability, namely the utilization of refurbished consumer returns from early sales to react to demand later in the selling season. Because consumer returns depend on previous sales, there is also a direct link to the anticipative supply decision. We capture this effect in a newsvendor‐type model and provide both analytical and numerical insights into the optimal anticipative and reactive decisions as well as the value of refurbishing in terms of the retailer's expected profitability.

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Section: Related Workmentioning

confidence: 96%

“…Further, the model differs from Li et al. () and Akcay et al. () in that another disposition option is available.…”

Section: Related Workmentioning

confidence: 99%