IDEAS home Printed from https://ideas.repec.org/a/bla/bstrat/v27y2018i4p503-527.html
   My bibliography  Save this article

Improving the Economic Performance of Remanufacturing Systems through Flexible Design Strategies: A Case Study Based on Remanufacturing Laptop Computers for the Cambodian Market

Author

Listed:
  • Jonathan Sze Choong Low
  • Yen Ting Ng

Abstract

Although numerous studies have highlighted the contributions of remanufacturing to sustainable development and the circular economy, the decision for a company to take up this strategy is riddled with uncertainties, especially when significant capital investment is involved. To improve the economic performance of a remanufacturing system in the face of uncertainties, we propose a methodological framework for flexible design of remanufacturing systems. Its application is demonstrated using a case study based on remanufacturing laptop computers for the Cambodian market. Through the case study, we show how one can explore the opportunity of setting up a remanufacturing system, study its economic feasibility and design flexible strategies to improve its economic performance in the face of uncertainties. More interestingly, we demonstrate how Monte Carlo simulation can be used to evaluate the effectiveness of different flexible design strategies in dealing with the uncertainties. Copyright © 2018 John Wiley & Sons, Ltd and ERP Environment

Suggested Citation

  • Jonathan Sze Choong Low & Yen Ting Ng, 2018. "Improving the Economic Performance of Remanufacturing Systems through Flexible Design Strategies: A Case Study Based on Remanufacturing Laptop Computers for the Cambodian Market," Business Strategy and the Environment, Wiley Blackwell, vol. 27(4), pages 503-527, May.
    • Handle: RePEc:bla:bstrat:v:27:y:2018:i:4:p:503-527
    DOI: 10.1002/bse.2017
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/bse.2017
    Download Restriction: no
    File URL: https://libkey.io/10.1002/bse.2017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Céline Michaud & Daniel Llerena, 2011. "Green consumer behaviour: an experimental analysis of willingness to pay for remanufactured products," Business Strategy and the Environment, Wiley Blackwell, vol. 20(6), pages 408-420, September.
    2. World Bank, 2016. "World Development Indicators 2016," World Bank Publications - Books, The World Bank Group, number 23969.
    3. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    4. Paul Shrivastava & Stuart Hart, 1995. "Creating sustainable corporations," Business Strategy and the Environment, Wiley Blackwell, vol. 4(3), pages 154-165, July.
    5. Benjamin T. Hazen & Diane A. Mollenkopf & Yacan Wang, 2017. "Remanufacturing for the Circular Economy: An Examination of Consumer Switching Behavior," Business Strategy and the Environment, Wiley Blackwell, vol. 26(4), pages 451-464, May.
    6. Saarinen, Linn & Dahlbäck, Niklas & Lundin, Urban, 2015. "Power system flexibility need induced by wind and solar power intermittency on time scales of 1–14 days," Renewable Energy, Elsevier, vol. 83(C), pages 339-344.
    7. V Jayaraman & V D R Guide & R Srivastava, 1999. "A closed-loop logistics model for remanufacturing," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 50(5), pages 497-508, May.
    8. Céline Michaud & Daniel Llerena, 2011. "Green consumer behaviour: an experimental analysis of willingness to pay for remanufactured products," Post-Print hal-01809083, HAL.
    9. Marcus Linder & Mats Williander, 2017. "Circular Business Model Innovation: Inherent Uncertainties," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 182-196, February.
    10. Erwin van der Laan & Marc Salomon & Rommert Dekker & Luk Van Wassenhove, 1999. "Inventory Control in Hybrid Systems with Remanufacturing," Management Science, INFORMS, vol. 45(5), pages 733-747, May.
    11. Francesco Rizzi & Irene Bartolozzi & Alessandra Borghini & Marco Frey, 2013. "Environmental Management of End‐of‐Life Products: Nine Factors of Sustainability in Collaborative Networks," Business Strategy and the Environment, Wiley Blackwell, vol. 22(8), pages 561-572, December.
    12. V. Daniel R. Guide, Jr. & Ruud H. Teunter & Luk N. Van Wassenhove, 2003. "Matching Demand and Supply to Maximize Profits from Remanufacturing," Manufacturing & Service Operations Management, INFORMS, vol. 5(4), pages 303-316, October.
    13. Kenné, Jean-Pierre & Dejax, Pierre & Gharbi, Ali, 2012. "Production planning of a hybrid manufacturing–remanufacturing system under uncertainty within a closed-loop supply chain," International Journal of Production Economics, Elsevier, vol. 135(1), pages 81-93.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gyanendra Singh Sisodia & Einas Awad & Heba Alkhoja & Bruno S. Sergi, 2020. "Strategic business risk evaluation for sustainable energy investment and stakeholder engagement: A proposal for energy policy development in the Middle East through Khalifa funding and land subsidies," Business Strategy and the Environment, Wiley Blackwell, vol. 29(6), pages 2789-2802, September.
    2. Navid Zarbakhshnia & Kannan Govindan & Devika Kannan & Mark Goh, 2023. "Outsourcing logistics operations in circular economy towards to sustainable development goals," Business Strategy and the Environment, Wiley Blackwell, vol. 32(1), pages 134-162, January.
    3. Antonella Zucchella & Pietro Previtali, 2019. "Circular business models for sustainable development: A “waste is food” restorative ecosystem," Business Strategy and the Environment, Wiley Blackwell, vol. 28(2), pages 274-285, February.
    4. Mattos, Claudia A. & Scur, Gabriela & Albuquerque, Thiago L.M., 2022. "Evaluation of circular business model: Theory of Change approach," Evaluation and Program Planning, Elsevier, vol. 92(C).
    5. Regina Frei & Lisa Jack & Sally‐Ann Krzyzaniak, 2020. "Sustainable reverse supply chains and circular economy in multichannel retail returns," Business Strategy and the Environment, Wiley Blackwell, vol. 29(5), pages 1925-1940, July.
    6. Johan Vogt Duberg & Jelena Kurilova‐Palisaitiene & Erik Sundin, 2023. "5‐step approach for initiating remanufacturing (5AFIR)," Business Strategy and the Environment, Wiley Blackwell, vol. 32(7), pages 4360-4370, November.
    7. Shanyong Wang & Jing Wang & Feng Yang & Yu Wang & Jun Li, 2018. "Consumer familiarity, ambiguity tolerance, and purchase behavior toward remanufactured products: The implications for remanufacturers," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1741-1750, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Liu, Wenjie & Liu, Wei & Shen, Ningning & Xu, Zhitao & Xie, Naiming & Chen, Jian & Zhou, Huiyu, 2022. "Pricing and collection decisions of a closed-loop supply chain with fuzzy demand," International Journal of Production Economics, Elsevier, vol. 245(C).
    2. Agnieszka D. Hunka & Marcus Linder & Shiva Habibi, 2021. "Determinants of consumer demand for circular economy products. A case for reuse and remanufacturing for sustainable development," Business Strategy and the Environment, Wiley Blackwell, vol. 30(1), pages 535-550, January.
    3. Wang, Yacan & Zhu, Quan & Krikke, Harold & Hazen, Benjamin, 2020. "How product and process knowledge enable consumer switching to remanufactured laptop computers in circular economy," Technological Forecasting and Social Change, Elsevier, vol. 161(C).
    4. Antonella Zucchella & Pietro Previtali & Roger Strange, 2022. "Proactive and reactive views in the transition towards circular business models. A grounded study in the plastic packaging industry," International Entrepreneurship and Management Journal, Springer, vol. 18(3), pages 1073-1102, September.
    5. Zhu, Xiaoxi & Wang, Miaomiao & Chen, Guofu & Chen, Xiaoshan, 2016. "The effect of implementing trade-in strategy on duopoly competition," European Journal of Operational Research, Elsevier, vol. 248(3), pages 856-868.
    6. Marcus Linder & Mats Williander, 2017. "Circular Business Model Innovation: Inherent Uncertainties," Business Strategy and the Environment, Wiley Blackwell, vol. 26(2), pages 182-196, February.
    7. Ruiz-Benítez, Rocío & Ketzenberg, Michael & van der Laan, Erwin A., 2014. "Managing consumer returns in high clockspeed industries," Omega, Elsevier, vol. 43(C), pages 54-63.
    8. Helena Forsman, 2013. "Environmental Innovations as a Source of Competitive Advantage or Vice Versa?," Business Strategy and the Environment, Wiley Blackwell, vol. 22(5), pages 306-320, July.
    9. Cristina Calvo-Porral & Jean-Pierre Lévy-Mangin, 2020. "The Circular Economy Business Model: Examining Consumers’ Acceptance of Recycled Goods," Administrative Sciences, MDPI, vol. 10(2), pages 1-13, May.
    10. Zheng, Xiao-Xue & Li, Deng-Feng & Liu, Zhi & Jia, Fu & Sheu, Jiuh-Biing, 2019. "Coordinating a closed-loop supply chain with fairness concerns through variable-weighted Shapley values," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 126(C), pages 227-253.
    11. V. Daniel R. Guide & Luk N. Van Wassenhove, 2009. "OR FORUM---The Evolution of Closed-Loop Supply Chain Research," Operations Research, INFORMS, vol. 57(1), pages 10-18, February.
    12. Juana Camacho-Otero & Casper Boks & Ida Nilstad Pettersen, 2018. "Consumption in the Circular Economy: A Literature Review," Sustainability, MDPI, vol. 10(8), pages 1-25, August.
    13. Wenyuan Wang & Daniel Y. Mo & Yue Wang & Mitchell M. Tseng, 2019. "Assessing the cost structure of component reuse in a product family for remanufacturing," Journal of Intelligent Manufacturing, Springer, vol. 30(2), pages 575-587, February.
    14. Seoyoon Lee & Minjung Kwak, 2020. "Consumer Valuation of Remanufactured Products: A Comparative Study of Product Categories and Business Models," Sustainability, MDPI, vol. 12(18), pages 1-29, September.
    15. Rafael Diaz & Erika Marsillac, 2017. "Evaluating strategic remanufacturing supply chain decisions," International Journal of Production Research, Taylor & Francis Journals, vol. 55(9), pages 2522-2539, May.
    16. Yu-Chung Tsao & Vu-Thuy Linh & Jye-Chyi Lu & Vincent Yu, 2018. "A supply chain network with product remanufacturing and carbon emission considerations: a two-phase design," Journal of Intelligent Manufacturing, Springer, vol. 29(3), pages 693-705, March.
    17. Yan Zhang & Wen Zhang, 2023. "Optimal pricing and greening decisions in a supply chain when considering market segmentation," Annals of Operations Research, Springer, vol. 324(1), pages 93-130, May.
    18. Yalabik, Baris & Chhajed, Dilip & Petruzzi, Nicholas C., 2014. "Product and sales contract design in remanufacturing," International Journal of Production Economics, Elsevier, vol. 154(C), pages 299-312.
    19. Shanyong Wang & Jing Wang & Feng Yang & Yu Wang & Jun Li, 2018. "Consumer familiarity, ambiguity tolerance, and purchase behavior toward remanufactured products: The implications for remanufacturers," Business Strategy and the Environment, Wiley Blackwell, vol. 27(8), pages 1741-1750, December.
    20. Pokharel, Shaligram & Mutha, Akshay, 2009. "Perspectives in reverse logistics: A review," Resources, Conservation & Recycling, Elsevier, vol. 53(4), pages 175-182.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:bstrat:v:27:y:2018:i:4:p:503-527. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-0836 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.