IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v11y2019i5p1420-d211853.html
   My bibliography  Save this article

The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior

Author

Listed:
  • Xiaodong Zhu

    (School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China)

  • Lingfei Yu

    (School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
    China Institute of Manufacturing Development, Nanjing University of Information Science and Technology, Nanjing 210044, China)

Abstract

Consumers cannot fully assess the quality of remanufactured products prior to purchase. To reduce consumer risk, closed-loop supply chains adopt a warranty strategy to enhance perceived value among customers and stimulate green growth. Based on Stackelberg game theory and considering consumers’ low-carbon and remanufactured product preferences, this paper aims to explore the decision-making efficiency of closed-loop supply chains with warranty services. The results of the study show that consumers’ confidence in purchasing remanufactured products has increased the demand for new products and remanufactured products, in turn also increasing the interest of the member companies of the supply chain, and stimulating the realization of the potential value of remanufacturing, which is conducive to green growth. When a remanufactured product warranty period meets certain conditions, the member companies of the supply chain can obtain optimal profit. The optimal warranty entity selection of a closed-loop supply chain with a warranty service depends on the warranty efficiency of each entity, thus making it necessary to examine the products of each warranty party.

Suggested Citation

  • Xiaodong Zhu & Lingfei Yu, 2019. "The Impact of Warranty Efficiency of Remanufactured Products on Production Decisions and Green Growth Performance in Closed-Loop Supply Chain: Perspective of Consumer Behavior," Sustainability, MDPI, vol. 11(5), pages 1-24, March.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:5:p:1420-:d:211853
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/11/5/1420/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/11/5/1420/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shafiee, Mahmood & Chukova, Stefanka, 2013. "Maintenance models in warranty: A literature review," European Journal of Operational Research, Elsevier, vol. 229(3), pages 561-572.
    2. Wang, Jinting & Zhou, Zhuang & Peng, Hao, 2017. "Flexible decision models for a two-dimensional warranty policy with periodic preventive maintenance," Reliability Engineering and System Safety, Elsevier, vol. 162(C), pages 14-27.
    3. S. Saha & S.P. Sarmah & Ilkyeong Moon, 2016. "Dual channel closed-loop supply chain coordination with a reward-driven remanufacturing policy," International Journal of Production Research, Taylor & Francis Journals, vol. 54(5), pages 1503-1517, March.
    4. Mai, Dung T. & Liu, Tieming & Morris, Michael D.S. & Sun, Shuzhen, 2017. "Quality coordination with extended warranty for store-brand products," European Journal of Operational Research, Elsevier, vol. 256(2), pages 524-532.
    5. Kunpeng Li & Suman Mallik & Dilip Chhajed, 2012. "Design of Extended Warranties in Supply Chains under Additive Demand," Production and Operations Management, Production and Operations Management Society, vol. 21(4), pages 730-746, July.
    6. Bifeng Liao & Bangyi Li, 2016. "Warranty as an Effective Strategy for Remanufactured Product," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 9(1), pages 41-57, January.
    7. Xiaodong Zhu & Lingfei Yu & Ji Zhang & Chenliang Li & Yizhao Zhao, 2018. "Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    8. Lei, Yong & Liu, Qian & Shum, Stephen, 2017. "Warranty pricing with consumer learning," European Journal of Operational Research, Elsevier, vol. 263(2), pages 596-610.
    9. Chen, Xu & Li, Ling & Zhou, Ming, 2012. "Manufacturer's pricing strategy for supply chain with warranty period-dependent demand," Omega, Elsevier, vol. 40(6), pages 807-816.
    10. Wallace J. Hopp, 2004. "Fifty Years of Management Science," Management Science, INFORMS, vol. 50(1), pages 1-7, January.
    11. Wu, Cheng-Han, 2018. "Price competition and technology licensing in a dynamic duopoly," European Journal of Operational Research, Elsevier, vol. 267(2), pages 570-584.
    12. Genc, Talat S. & De Giovanni, Pietro, 2018. "Optimal return and rebate mechanism in a closed-loop supply chain game," European Journal of Operational Research, Elsevier, vol. 269(2), pages 661-681.
    13. 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.
    14. Hao Zou & Jin Qin & Peng Yang & Bo Dai, 2018. "A Coordinated Revenue-Sharing Model for a Sustainable Closed-Loop Supply Chain," Sustainability, MDPI, vol. 10(9), pages 1-15, September.
    15. Bifeng Liao & Bangyi Li, 2016. "Warranty as an Effective Strategy for Remanufactured Product," International Journal of Information Systems and Supply Chain Management (IJISSCM), IGI Global, vol. 9(3), pages 83-98, July.
    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. Long, Qingqi & Tao, Xiaoying & Chen, Yunting & Chen, Yingni & Xu, Le & Zhang, Shuzhu & Zhang, Jie, 2022. "Exploring combined effects of dominance structure, green sensitivity, and green preference on manufacturing closed-loop supply chains," International Journal of Production Economics, Elsevier, vol. 251(C).
    2. Caiquan Duan & Guoyi Xiu & Fengmin Yao, 2019. "Multi-Period E-Closed-Loop Supply Chain Network Considering Consumers’ Preference for Products and AI-Push," Sustainability, MDPI, vol. 11(17), pages 1-32, August.
    3. Karina Cecilia Arredondo-Soto & Alejandro Jiménez-Zaragoza & Marco Augusto Miranda-Ackerman & Julio Blanco-Fernández & Alejandra García-Lechuga & Guadalupe Hernández-Escobedo & Jorge Luis García-Alcar, 2022. "Design and Repair Strategies Based on Product–Service System and Remanufacturing for Value Preservation," Sustainability, MDPI, vol. 14(14), pages 1-19, July.
    4. Ihwan Ghazali & Salwa Hanim Abdul-Rashid & Siti Zawiah Md Dawal & Nurul Huda & Amir Husni Mohd Shariff & Safarudin Gazali Herawan & Fu Haw Ho & Novita Sakundarini, 2021. "Guidelines for Designing Green Products Considering Customers’ Cultural Preferences," Sustainability, MDPI, vol. 13(2), pages 1-27, January.
    5. Ciwei Dong & Qingying Li & Bin Shen & Xun Tong, 2019. "Sustainability in Supply Chains with Behavioral Concerns," Sustainability, MDPI, vol. 11(15), pages 1-7, July.
    6. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    7. Esmat Baghdadi & Mahmood Shafiee & Babakalli Alkali, 2022. "Upgrading Strategy, Warranty Policy and Pricing Decisions for Remanufactured Products Sold with Two-Dimensional Warranty," Sustainability, MDPI, vol. 14(12), pages 1-15, June.

    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. Xiaodong Zhu & Lingfei Yu & Wei Li, 2019. "Warranty Period Decision and Coordination in Closed-Loop Supply Chains Considering Remanufacturing and Consumer Behavior," Sustainability, MDPI, vol. 11(15), pages 1-26, August.
    2. Xiaodong Zhu & Lingfei Yu & Ji Zhang & Chenliang Li & Yizhao Zhao, 2018. "Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective," Sustainability, MDPI, vol. 10(12), pages 1-21, December.
    3. Bian, Yiwen & Xie, Jiazheng & Archibald, Thomas W. & Sun, Yanhong, 2019. "Optimal extended warranty strategy: Offering trade-in service or not?," European Journal of Operational Research, Elsevier, vol. 278(1), pages 240-254.
    4. Ehsan Shekarian & Simme Douwe Flapper, 2021. "Analyzing the Structure of Closed-Loop Supply Chains: A Game Theory Perspective," Sustainability, MDPI, vol. 13(3), pages 1-32, January.
    5. Afsahi, Mohsen & Shafiee, Mahmood, 2020. "A stochastic simulation-optimization model for base-warranty and extended-warranty decision-making of under- and out-of-warranty products," Reliability Engineering and System Safety, Elsevier, vol. 197(C).
    6. Shaojian Qu & Hui Yang & Ying Ji, 2021. "Low-carbon supply chain optimization considering warranty period and carbon emission reduction level under cap-and-trade regulation," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(12), pages 18040-18067, December.
    7. Wang, Dongfan & He, Zhen & He, Shuguang & Zhang, Zhaomin & Zhang, Yiwen, 2021. "Dynamic pricing of two-dimensional extended warranty considering the impacts of product price fluctuations and repair learning," Reliability Engineering and System Safety, Elsevier, vol. 210(C).
    8. Pietro De Giovanni & Georges Zaccour, 2022. "A selective survey of game-theoretic models of closed-loop supply chains," Annals of Operations Research, Springer, vol. 314(1), pages 77-116, July.
    9. Wang, Xiaolin & Zhao, Xiujie & Liu, Bin, 2020. "Design and pricing of extended warranty menus based on the multinomial logit choice model," European Journal of Operational Research, Elsevier, vol. 287(1), pages 237-250.
    10. Lianmin Zhang & Lei Guan & Daniel Zhuoyu Long & Houcai Shen & Huajun Tang, 2023. "Who is better off by selling extended warranties in the supply chain: the manufacturer, the retailer, or both?," Annals of Operations Research, Springer, vol. 328(2), pages 1557-1583, September.
    11. Keyuan Cai & Zhen He & Yaqi Lou & Shuguang He, 2020. "Risk-aversion information in a supply chain with price and warranty competition," Annals of Operations Research, Springer, vol. 287(1), pages 61-107, April.
    12. He, Qidong & Wang, Nengmin & Browning, Tyson R. & Jiang, Bin, 2022. "Competitive collection with convenience-perceived customers," European Journal of Operational Research, Elsevier, vol. 303(1), pages 239-254.
    13. Qiyao Liu & Xiaodong Zhu, 2024. "Incentive strategies for retired power battery closed-loop supply chain considering corporate social responsibility," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(7), pages 19013-19050, July.
    14. Haitao Chen & Zhaohui Dong & Gendao Li, 2020. "Government Reward-Penalty Mechanism in Dual-Channel Closed-Loop Supply Chain," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    15. Jie Deng & Xuwei Luo & Mengsi Hu, 2022. "Implications of a Carbon Tax Mechanism in Remanufacturing Outsourcing on Carbon Neutrality," IJERPH, MDPI, vol. 19(9), pages 1-21, May.
    16. Qin, Xuelian & Liu, Zhixue & Tian, Lin, 2021. "The optimal combination between selling mode and logistics service strategy in an e-commerce market," European Journal of Operational Research, Elsevier, vol. 289(2), pages 639-651.
    17. Chenghao Lai & Xiuli Wang & Hengkai Li & Yanbing Zhou, 2024. "Unleashing the Power of Closed-Loop Supply Chains: A Stackelberg Game Analysis of Rare Earth Resources Recycling," Sustainability, MDPI, vol. 16(12), pages 1-23, June.
    18. Deepak Singhal & Sarat Kumar Jena & Satyabrata Aich & Sushanta Tripathy & Hee-Cheol Kim, 2021. "Remanufacturing for Circular Economy: Understanding the Impact of Manufacturer’s Incentive under Price Competition," Sustainability, MDPI, vol. 13(21), pages 1-19, October.
    19. Wang, Xiaolin & Li, Lishuai & Xie, Min, 2020. "An unpunctual preventive maintenance policy under two-dimensional warranty," European Journal of Operational Research, Elsevier, vol. 282(1), pages 304-318.
    20. Taleizadeh, Ata Allah & Sadeghi, Razieh, 2019. "Pricing strategies in the competitive reverse supply chains with traditional and e-channels: A game theoretic approach," International Journal of Production Economics, Elsevier, vol. 215(C), pages 48-60.

    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:gam:jsusta:v:11:y:2019:i:5:p:1420-:d:211853. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.