Refund policies for cores with quality variation in OEM remanufacturing

Wei, Shuoguo; Tang, Ou; Liu, Weihua

doi:10.1016/j.ijpe.2014.12.006

Cited by 34 publications

(15 citation statements)

References 18 publications

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“…Most of the models in acquisition control category assume that the classification is predetermined without any inspection error. In fact, the classification method itself (how to categorize the cores) depends on the quality distribution, as indicated by Galbreth and Blackburn [36] and Wei et al [111]. In addition, the inspection errors are usually inevitable, and they have important influences on the remanufacturers' acquisition decision [39,105].…”

Section: Discussionmentioning

confidence: 99%

Core (product) Acquisition Management for remanufacturing: a review

2015

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in AbstractCore acquisition is essential for the success of remanufacturing business. To describe the current status of the quantitative research in Core Acquisition Management and to indicate possible future research directions, a literature review is conducted in this paper about the quantitative modeling in Core Acquisition Management research area. The activities included in Core Acquisition Management are categorized into topics such as acquisition control, forecasting return, return strategies, quality classification and reverse channel design. While most of the studies focus on acquisition control, studies on return strategies and return forecast are relatively limited. Furthermore, this paper analyzes the research papers according to the key assumptions such as, hybrid/non-hybrid remanufacturing systems, acquisition functions, quality classification methods and perfect/imperfect substitutions. In conclusion, studies based on the assumptions of non-hybrid remanufacturing systems and imperfect substitution should gain more attentions, since these situations frequently occur in practice but are less investigated in the existing literature. In addition, empirical validation of the various forms of the acquisition function (relations between acquisition incentives and acquisition volume) should be important for further investigations.

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Section: Discussionmentioning

confidence: 99%

Core (product) Acquisition Management for remanufacturing: a review

2015

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“…The assumption that the remanufacturing cost has a negative linear relationship with the quality is addressed in several papers including: Galbreth . Also, studying a system that assigns an acquisition price for each return based on its exact quality is inline with the work done by Wei, Tang & Liu (2014). They argue that such a refund policy is found to be better than setting a sole acquisition price for all returns or setting an acquisition price for every quality-category.…”

Section: Model Assumptionsmentioning

confidence: 87%

“…The work minimizes total acquisition and remanufacturing costs through the use of optimal quantity acquired. Wei, Tang & Liu (2014) argue that acquisition price paid for returns should balance between the capital tied up for customers and the risk that customers may leave the cores to another collector. They stated that pricing should, also, be appropriate such that cores with higher quality are more encouraged to be returned.…”

Section: Related Workmentioning

confidence: 99%

Optimal configuration of remanufacturing supply network with return quality decision

Radhi

Guo-qing

2015

International Journal of Production Research

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This research studies the configuration problem of a remanufacturing production network together with the decision for return quality thresholds, in which, the manufacturer has multiple remanufacturing facilities to satisfy different market demands. Quality of returns is stochastic, while demand for remanufactured products is either stochastic or deterministic. The problem we considered is to determine facilities to operate, minimum quality to accept into each operating facility, return quantity and demand allocation simultaneously so that the system's profit is maximized. The problem is formulated as a mixed integer nonlinear programming model. Through the use of a numerical example, the impact of quantity of returns, total spending, quality uncertainty, demand uncertainty, and transportation cost on the remanufacturing system is analyzed.

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“…They observed that grading the cores and keeping them in separate inventories for each quality grade can increase the remanufacturer's profits. In another study, refund policies for multiple quality classes and principles for quality partition have been developed with the assumption that quality can be preciously defined (Wei, Tang, and Liu 2015). Similarly, in Galbreth and Blackburn (2009), the grading process was assumed to be accurate without errors.…”

Section: Literature Reviewmentioning

confidence: 99%

Refund policies and core classification errors in the presence of customers’ choice behaviour in remanufacturing

Tang

Liu

Guo

et al. 2021

International Journal of Production Research

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In light of a circular economy, to encourage core returns, the remanufacturer charges a deposit and refund it to the customer based on quality inspection of cores. Generally, two types of classification errors exist and interact with each other during the inspection process: either low-quality cores are sorted as remanufacturable, or high-quality cores are sorted as non-remanufacturable. The remanufacturer needs to choose refund policies and determine a reasonable deposit value, considering customers' potential responses. This paper firstly develops analytical solutions for these issues within a game theory framework. The effect of inspection information transparency is evaluated by comparing two settings: the information of inspection errors is available to customers or not. The study results show the advantage of inspection information transparency from the remanufacturer's perspective. The analysis indicates the importance of avoiding overestimating customers' payoff of products and the significance of inspection accuracy. The study also highlights that the salvage value of different cores significantly influences the remanufacturer's profits, and the improvement of inspection accuracy does not necessarily reduce the customer's return of low-quality cores.

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Refund policies for cores with quality variation in OEM remanufacturing

Cited by 34 publications

References 18 publications

Core (product) Acquisition Management for remanufacturing: a review

Core (product) Acquisition Management for remanufacturing: a review

Optimal configuration of remanufacturing supply network with return quality decision

Refund policies and core classification errors in the presence of customers’ choice behaviour in remanufacturing

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