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The role of quality uncertainty in remanufacturing decisions

Author

Listed:
  • Samar K. Mukhopadhyay
  • Huafan Ma

Abstract

In this study, we investigate the impact of the uncertainty resulting from various conditions of returns on firms' remanufacturing policy. We show that firms can deal with this problem strategically by handling returns of diverse quality levels differently. In some cases, they can remanufacture all of the acquired used products upon their receipt. In other cases, however, it will be more profitable for firms to make use of secondary market for selling returned products with relatively low quality, as-is, rather than remanufacturing them. We find the optimal remanufacturing policies under these different conditions.

Suggested Citation

  • Samar K. Mukhopadhyay & Huafan Ma, 2009. "The role of quality uncertainty in remanufacturing decisions," International Journal of Business and Systems Research, Inderscience Enterprises Ltd, vol. 3(4), pages 387-412.
    • Handle: RePEc:ids:ijbsre:v:3:y:2009:i:4:p:387-412
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