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Remanufacturing Policies Options for a Closed-Loop Supply Chain Network

Author

Listed:
  • Yan Zhou

    (Department of Management Science and Engineering, Qingdao University, Qingdao 266071, China)

  • Xue-Qi Liu

    (Department of Management Science and Engineering, Qingdao University, Qingdao 266071, China)

  • Kar-Hung Wong

    (School of Computer Science and Applied Mathematics, University of the Witwatersrand, Johannesburg 2000, South Africa)

Abstract

Due to the need for resource utilization and environmental protection, remanufacturing is used as an effective means to achieve a circular economy. To focus on the production and sales of new products, manufacturers outsource the remanufacturing of used products to remanufacturers. Aiming at helping manufacturers to choose between self-remanufacturing and outsourcing remanufacturing policies, a closed-loop supply chain network equilibrium model considering the remanufacturing policy options is established. The equilibrium decision-making is obtained by using the variational inequality method. Furthermore, the criteria for manufacturers to choose between the two remanufacturing policies based on different factors such as recovery rates of the used products, remanufacturing costs, and environmental impact parameters, are given. Numerical examples show the following results: (1) When compared with self-remanufacturing policy, outsourcing remanufacturing policy can save resources, increase the sales of products, and have a smaller environmental impact. (2) When the recycling rate of used products is low, choosing an outsourcing remanufacturing policy can increase the sales of products. When the recycling rate is high, choosing a self-remanufacturing policy can get more profits. (3) When the costs of a self-remanufacturing policy and an outsource-remanufacturing policy are quite different, choosing the outsourcing remanufacturing policy can save resources and protect the environment.

Suggested Citation

  • Yan Zhou & Xue-Qi Liu & Kar-Hung Wong, 2021. "Remanufacturing Policies Options for a Closed-Loop Supply Chain Network," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:12:p:6640-:d:572663
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    References listed on IDEAS

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    Cited by:

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    2. Yan Zhou & Xin-Tong Lin & Zhi-Ping Fan & Kar-Hung Wong, 2022. "Remanufacturing Strategy Choice of a Closed-Loop Supply Chain Network Considering Carbon Emission Trading, Green Innovation, and Green Consumers," IJERPH, MDPI, vol. 19(11), pages 1-42, June.
    3. Xuemei Zhang & Jiawei Hu & Suqin Sun & Guohu Qi, 2022. "Extended Warranty Strategy and Its Environment Impact of Remanufactured Supply Chain," IJERPH, MDPI, vol. 19(3), pages 1-25, January.
    4. Juan Tang & An‐Lin Song & Chang‐Yi Liu & Zhi Liu, 2023. "Optimal decisions in a remanufacturing supply chain under money‐back guarantees," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(4), pages 2254-2277, June.
    5. Yan Zhou & Miao Hou & Kar-Hung Wong, 2023. "The Optimal Remanufacturing Strategy of the Closed-Loop Supply Chain Network under Government Regulation and the Manufacturer’s Design for the Environment," Sustainability, MDPI, vol. 15(9), pages 1-34, April.

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