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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

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  • 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
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    References listed on IDEAS

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    Cited by:

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    5. 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.
    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.

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