IDEAS home Printed from https://ideas.repec.org/a/wsi/apjorx/v37y2020i05ns0217595920500177.html
   My bibliography  Save this article

Should OEMs Outsource Remanufacturing to Retailers?

Author

Listed:
  • Zhifeng Qian

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P. R. China)

  • Junwu Chai

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P. R. China2Center for West African Studies of University of Electronic Science and Technology of China, Chengdu 611731, P. R. China)

  • Hengyu Li

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P. R. China)

  • Wei Yan

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P. R. China)

  • Hong Chen

    (School of Management and Economics, University of Electronic Science and Technology of China, Chengdu 611731, P. R. China)

Abstract

In recent times, sustainability has become more important for businesses. Accordingly, product remanufacturing has emerged as an interesting topic, as it is generally considered as a profitable and environmentally friendly end-of-use management option for several products. While extant literature on remanufacturing has comprehensively studied the topic of outsourcing, it has failed to recognize that retailers also have the flexibility to engage in remanufacturing. However, in recent years, several brand name retailers have established remanufacturing operations. The following question arises: Should original equipment manufacturers (OEMs) outsource their remanufacturing operations to their retailers? To answer this question, two models are developed in which an OEM interacts with an independent retailer on remanufacturing operations with the option to either remanufacture all products in-house (Model M) or outsource remanufacturing to their retailer (Model R). The result shows that although model M potentially facilitates greater economic, social, and environmental sustainability, it has costs for the retailer. Finally, a revenue-sharing contract is proposed to achieve a “win-win-win” outcome that has economic, social, and environmental benefits for all parties.

Suggested Citation

  • Zhifeng Qian & Junwu Chai & Hengyu Li & Wei Yan & Hong Chen, 2020. "Should OEMs Outsource Remanufacturing to Retailers?," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 37(05), pages 1-34, October.
  • Handle: RePEc:wsi:apjorx:v:37:y:2020:i:05:n:s0217595920500177
    DOI: 10.1142/S0217595920500177
    as

    Download full text from publisher

    File URL: http://www.worldscientific.com/doi/abs/10.1142/S0217595920500177
    Download Restriction: Access to full text is restricted to subscribers

    File URL: https://libkey.io/10.1142/S0217595920500177?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yufei Hu & Lianghua Chen & Yingying Chi & Bowen Song, 2022. "Manufacturer encroachment on a closed‐loop supply chain with design for remanufacturing," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 43(6), pages 1941-1959, September.
    2. Yunting Feng & Yong Geng & Ge Zhao & Mengya Li, 2022. "Carbon Emission Constraint Policy in an OEM and Outsourcing Remanufacturer Supply Chain with Consumer Preferences," IJERPH, MDPI, vol. 19(8), pages 1-16, April.
    3. Xiqiang Xia & Mengya Li & Biao Li & Hao Wang, 2021. "The Impact of Carbon Trade on Outsourcing Remanufacturing," IJERPH, MDPI, vol. 18(20), pages 1-18, October.
    4. Amol Vasant Bhide & Milind M. Akarte, 2024. "Optimal Configuration Strategies for a Remanufacturing Firm: A Conceptual Framework," International Journal of Global Business and Competitiveness, Springer, vol. 19(1), pages 71-81, June.

    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:wsi:apjorx:v:37:y:2020:i:05:n:s0217595920500177. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Tai Tone Lim (email available below). General contact details of provider: http://www.worldscinet.com/apjor/apjor.shtml .

    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.