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Implications of product upgrading confronting supplier remanufacturing

Author

Listed:
  • Zhifeng Qian
  • Junwu Chai
  • Hengyu Li
  • Wei Yan
  • Hong Chen

Abstract

It is generally believed that new products upgrading is an effective strategy to deal with the cannibalisation problem from remanufacturing, however, it is not clear how the new product upgrading strategy affect the decision-making of the downstream manufacturer and the upstream supplier. By examining the relationship between supplier remanufacturing profits and product cannibalisation, we develop two models to investigate the implications of the manufacturer's product upgrading confronting supplier remanufacturing. The results show that an product upgrading strategy can effectively enhance the manufacturer's profits if the investment cost is relatively low. Although the product upgrading strategy may hinder the remanufacturing operations, it will always be beneficial for the wholesaling of the supplier's new products. Therefore, the upgrading strategy can mitigate cannibalisation problems and create an optimal pareto improvement for both parties. Finally, we conduct a data analysis to provide additional managerial insights regarding the supply chain.

Suggested Citation

  • Zhifeng Qian & Junwu Chai & Hengyu Li & Wei Yan & Hong Chen, 2020. "Implications of product upgrading confronting supplier remanufacturing," International Journal of Production Research, Taylor & Francis Journals, vol. 58(19), pages 5870-5892, October.
    • Handle: RePEc:taf:tprsxx:v:58:y:2020:i:19:p:5870-5892
    DOI: 10.1080/00207543.2019.1660827
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    Cited by:

    1. Zongbao Zou & Cong Wang & Qinjia Zhong, 2022. "How Does Retailer-Oriented Remanufacturing Affect the OEM’s Quality Choice?," Sustainability, MDPI, vol. 14(13), pages 1-21, June.
    2. Xin Lu & Fangchao Xu & Fan Qin, 2024. "Remanufacturing Operations in Different Financial Ownership Structures with Consideration of the Upwards Supplier," Sustainability, MDPI, vol. 16(8), pages 1-21, April.
    3. Jian Wang & Wenxuan Shao, 2021. "Joint Capacity Investment, Collecting and Pricing Decisions in a Capacity Constraint Closed-Loop Supply Chain Considering Cooperation," Sustainability, MDPI, vol. 13(16), pages 1-28, August.
    4. Juncheng Wu & Lei Zhang & Xuan Shen, 2024. "Outsourcing or Authorizing? Optimal Options for Third-Party Remanufacturing Modes with Green Consumerism," Sustainability, MDPI, vol. 16(5), pages 1-14, February.
    5. Mehmet Ali Soytaş & Damla Durak Uşar & Meltem Denizel, 2022. "Estimation of the static corporate sustainability interactions," International Journal of Production Research, Taylor & Francis Journals, vol. 60(4), pages 1245-1264, February.

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