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

Li, Gendao; Reimann, Marc; Zhang, Weihua

doi:10.1016/j.ejor.2018.05.060

Cited by 77 publications

(37 citation statements)

References 25 publications

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“…Our work is particularly relevant to Li et al [24]; using a stylized model of endogenous product quality improvement and remanufacturing, the authors find that the main driver of the contradicting results is a change in manufacturing costs that is caused by improving the product quality. However, we differentiate from them in several pronounced aspects: First, based on the observations from current practice that, in the USA remanufacturing market, only 6% remanufacturers were OEMs [9], and we allowed the OEM the flexibility of outsourcing its remanufacturing to TPRs.…”

Section: Literature Reviewmentioning

confidence: 77%

“…Please note that, as with Li et al [24] and Atasu and Souza [27], in our both models, the OEM can take the strategic decision of whether to provide the upgraded version for new products. More specifically, if the OEM does not invest into research and development (R&D), it would remain with the existing generation of new products.…”

Section: Problem Setting and Modelingmentioning

confidence: 91%

“…Since the decisions around introducing a new version require significant lead times, we followed Li et al [24] and Atasu and Souza [27] and assumed that the sequence starts in Stage 1 with the OEM deciding whether to introduce a new upgraded version. Both parties then choose their optimal responses in marketing: the OEM first announces its license fees for remanufacturing ( f ) to the independent TPR, who responds by announcing the optimal quantities of remanufactured products (q r ).…”

Section: Problem Setting and Modelingmentioning

confidence: 99%

See 2 more Smart Citations

Sustainable Decisions on Product Upgrade Confrontations with Remanufacturing Operations

Sun

Zhang

2018

Sustainability

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In recent decades, remanufacturing is perceived to be an environmentally friendly option due to the reduced consumption of materials, energy etc. It should be noted that whether the remanufacturing operations are undertaken by the original equipment manufacturers (OEMs) or outsourced to the remanufacturers, given the size and the growth of remanufactured products, many OEMs intend to fend off the potential cannibalization of new products sales through differentiating their quality levels from those of remanufactured ones by launching upgraded versions. To understand whether and how the product upgrading strategy impacts on optimal outcomes in the context of the remanufacturing operations undertaken by OEMs or third-party remanufacturers (TPRs), in this paper, we develop two models that highlight the OEM’s product upgrading strategy under the scenarios where (1) the OEM owns its remanufacturing operations in-house (Model O) or (2) remanufacturing operations are undertaken by a TPR (Model T). Among other results, we find that, from an economic performance perspective, it is more beneficial for the OEM to perform remanufacturing operations in-house; however, from an environmental sustainability perspective, such behavior is not always good for our environment. In particular, when the level of product upgrading is pronounced, the remanufacturing operations undertaken by the OEM are always detrimental to our environment, due to indulging in remanufacturing, as seen in Model O.

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Section: Literature Reviewmentioning

confidence: 77%

Section: Problem Setting and Modelingmentioning

confidence: 91%

Section: Problem Setting and Modelingmentioning

confidence: 99%

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Sustainable Decisions on Product Upgrade Confrontations with Remanufacturing Operations

Sun

Zhang

2018

Sustainability

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“…Li et al. (2018) discuss the relationship between remanufacturing and the product quality improvement when a manufacturer exists in the market. Rahmani et al.…”

Section: Literature Reviewmentioning

confidence: 99%

The prices and quality of new and remanufactured products in a new market segment

Qiao

2020

Int Trans Operational Res

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This paper studies the optimal prices and quality of new and remanufactured products, and especially discusses the quality adjustment of the original equipment manufacturer (OEM) in a new market segment that consists of the indifferent segment and the new product only segment. Consumers in the first segment have the same willingness to pay for new and remanufactured products, while consumers in the second segment are only willing to purchase new products. We use the proportion of consumers in the indifferent segment accounting for all consumers to segment the market. We present game models and employ backward induction to derive the optimal prices and quality in three scenarios: the monopolist OEM no‐remanufacturing, the monopolist OEM remanufacturing, and an OEM no‐remanufacturing but an independent remanufacturer (IR) remanufacturing. When the OEM or the IR remanufactures, we find that the OEM cannot lower the product quality. In addition, we compare the optimal quality between the unsegmented and segmented market for each scenario. The results show the OEM should increase its product quality under certain conditions after the OEM realizes that there is a segmented market. Furthermore, we conduct numerical analyses to discuss the impact of related parameters on practitioners’ profits, which provides more guidelines for practitioners.

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“…However, the remanufactured products with low carbon and environmental protection are difficult to meet customer expectations [5] and market demand [6]. The quality of remanufactured products becomes the shackle of the development of the remanufacturing industry [7]. How to assemble the uncertainty of remanufactured parts with high production and resource efficiency becomes a challenge for the remanufacturing assembly system [8].…”

Section: Introductionmentioning

confidence: 99%

Data-driven remanufacturing assembly intelligent control system for improving resource and production efficiency

Liu

Cai

Zhu³

et al. 2020

Preprint

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Remanufacturing has been considered to be one of the most effective ways to deal with sustainable manufacturing. This paper proposes a data-driven intelligent control system for improving the production and resource efficiency of the remanufacturing assembly systems. First, an optimization model of the reassembly scheme is established for minimizing the quality loss and comprehensive cost. Remanufactured parts are measured, grouped, coded, and dimensional chain calculated based on the data acquisition and processing technology. Then, an intelligent control method for remanufacturing assembly process is proposed, which is a real-time monitoring and dynamic compensation response to abnormal quality to achieve intelligent control of reassembly process. The intelligent control information system that include information perception and fusion technology, real-time monitoring and dynamic compensation architecture are studied and implemented through data-driven technologies. Finally, a case study illustrates its practicability offering a technical support for sustainability of remanufacturing.

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

Cited by 77 publications

References 25 publications

Sustainable Decisions on Product Upgrade Confrontations with Remanufacturing Operations

Sustainable Decisions on Product Upgrade Confrontations with Remanufacturing Operations

The prices and quality of new and remanufactured products in a new market segment

Data-driven remanufacturing assembly intelligent control system for improving resource and production efficiency

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