The Impact of Authorized Remanufacturing on Sustainable Remanufacturing

Xia, Xiqiang; Zhang, Cuixia

doi:10.3390/pr7100663

Cited by 19 publications

(16 citation statements)

References 15 publications

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“…Recently, Zou et al [27] studied how outsourcing remanufacturing affects consumer environmental awareness, and found that outsourcing remanufacturing does not decrease the quantity of new products and may not improve the environmental performance. Xia and Zhang [28] analyzed the impact of outsourcing remanufacturing on sustainability issues, and drew a conclusion that outsourcing improves its unfavourable market competitive position. Sundin and Bras [14] elucidated the economic and environmental benefits and provided an argument for why products to be used for functional sales should be remanufactured.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing

Liang

Wang

2020

Sustainability

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Although many studies have recently investigated how the product quality impacts on economic and environment performance under remanufacturing, all of them assume that remanufacturing operations are undertaken by the original equipment manufacturers (OEMs) or independent remanufacturers (IRs). However, many OEMs such as Lexmark, Canon, and Epson filed lawsuits with those IRs without licensing, but outsourced the remanufacturing operations to several contracted remanufacturers (CRs). We therefore extend the prior research to investigate the economic and environmental implications of OEMs’ strategic desired quality level choices under remanufacturing outsourcing. That is, we develop two models corresponding to two scenarios where OEMs (1) undertake remanufacturing in-house or (2) outsource it to a CR. Our results show that, to create a less intense cannibalization problem for new products sales, OEMs would be likely to choose a lower product quality when outsourcing remanufacturing to a CR. More importantly, from the economic perspective, we find that outsourcing remanufacturing to a CR hurts the OEM and the industry. However, from the environmental angle, our results reveal that there is a ratio threshold for environmental impact for different life cycle phases, above which remanufacturing in-house is definitely beneficial for OEM in economics and environment, but for the rest, outsourcing is equally or more environmental-friendly, despite cutting down the profit.

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Section: Literature Reviewmentioning

confidence: 99%

Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing

Liang

Wang

2020

Sustainability

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“…The results reveal that many chemical fertilizers, farmyard manure, and pesticides in China are inefficient. Xia et al [22] based on the authorized remanufacturing, construct the game model between a manufacturer and a remanufacturer. The main results are as follows: the OEM could increase its profit and change its unfavorable market competition status by authorizing remanufacturing; a franchise contract could make the sustainability supply chain optimized; when the ratio of the environment effect is greater than a certain threshold, centralized decision-making could not only increase the supply chain revenue, but also reduce the impact on the environment.…”

Section: Other Issuesmentioning

confidence: 99%

Special Issue on “Green Technologies for Production Processes”

et al. 2021

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“…Third-party remanufacturing is divided into outsourced remanufacturing and authorized remanufacturing [15]. The choice of a third party for remanufacturing by original manufacturers based on intellectual property protection is an effective means for original manufacturers to participate in the remanufacturing process and obtain remanufacturing revenue [16][17][18]. In particular, when the per unit new product production cost is high or consumers perceive that the remanufactured product has a low value, authorized remanufacturing is an effective model [15].…”

Section: Introductionmentioning

confidence: 99%

Comparatively Analyzing the Impact of Government Subsidy and Carbon Tax Policy on Authorized Remanufacturing

Geng

Xia

et al. 2021

IJERPH

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Authorized remanufacturing is an important means to achieve green manufacturing and carbon neutrality. In this study, a game theory model between a manufacturer and a remanufacturer was constructed to analyze the impact of government subsidies and carbon tax policies on authorized remanufacturing. Based on the game theory model, the effects of two government policies on the optimal solution, namely, the unit cost of remanufacturing product authorization and the waste product recovery rate, were compared and analyzed. This analysis could provide a reference for the government to improve and formulate relevant remanufacturing policies. The main results are as follows: government subsidy policies may increase the unit cost of remanufacturing product authorization and the rates of waste product recovery; government carbon tax policies may not affect the unit cost of remanufacturing product authorization, and increase the rates of waste product recovery; the government subsidy policy may not affect the unit retail price of new products, and reduces the unit retail price of remanufactured products; the government subsidy and carbon tax policies may reduce sales of new products and increase sales of remanufactured products; the government subsidies may increase the revenue of the original equipment manufacturer (OEM) and the remanufacturer; and the government carbon tax policies may increase the revenue of the remanufacturer. However, government carbon tax policies increase the revenue of the OEM only when the new product carbon tax amount is higher than a certain threshold. The impact of the two policies on the environment is related to the ratio of the two products’ impact on the environment, i.e., the quota ratio between the unit government carbon tax of the new product and the unit government subsidy of the remanufactured product. Finally, the consumer surplus is maximized when the government adopts the subsidy policy and lowest when the government adopts the carbon tax policy.

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The Impact of Authorized Remanufacturing on Sustainable Remanufacturing

Cited by 19 publications

References 15 publications

Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing

Economic and Environmental Implications of Quality Choice under Remanufacturing Outsourcing

Special Issue on “Green Technologies for Production Processes”

Comparatively Analyzing the Impact of Government Subsidy and Carbon Tax Policy on Authorized Remanufacturing

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