Remanufacturing mode choice considering consumer’s dual preference under patent licensing
Tóm tắt
Many original equipment manufacturers (OEMs) do not remanufacture by themselves, but instead license the remanufacturing business to other companies for a royalty. This paper examines to whom OEM should outsource remanufacturing when both distributors and independent third-party remanufacturers (TPR) are capable of remanufacturing. We have established three models: OEM licenses remanufacturing to the distributor (model DR); OEM licenses remanufacturing to TPR (model TR); OEM licenses remanufacturing to both the distributor and TPR (model DTR). We compared the optimal strategies of each member of the supply chain in the three models and analyzed the influence of consumers' dual preference for the remanufactured product on the decision making. The results showed that when consumers are reluctant to purchase a certain type of remanufactured product, OEM prefers to outsource the remanufacturing business to TPR. Otherwise, OEM prefers to license remanufacturing to both the distributor and TPR. In terms of two single remanufacturing modes, whether for OEM or TPR, TPR remanufacturing mode is always better than the distributor remanufacturing mode.
Tài liệu tham khảo
Agrawal, Vishal V., Atalay Atasu, and Koert van Ittersum. 2015. Remanufacturing, third-party competition, and consumers’ perceived value of new products. Management Science 61 (1): 60–72. https://doi.org/10.1287/mnsc.2014.2099.
Arora, Ashish, Andrea Fosfuri, and Thomas Ronde. 2013. Managing licensing in a market for technology. Management Science 59 (5): 1092–1106. https://doi.org/10.1287/mnsc.1120.1628.
Atasu, Atalay, Miklos Sarvary, and Luk N. Van Wassenhove. 2008. Remanufacturing as a Marketing Strategy. Management Science 54 (10): 1731–1746. https://doi.org/10.1287/mnsc.1080.0893.
Atasu, Atalay, V. Daniel, R. Guide Jr., and Luk N. Van Wassenhove. 2010. So what if remanufacturing cannibalizes my new product sales? California Management Review 52 (2): 56–76. https://doi.org/10.1525/cmr.2010.52.2.56.
Bagchi, Aniruddha, and Arijit Mukherjee. 2014. Technology licensing in a differentiated oligopoly. International Review of Economics & Finance 29: 455–465. https://doi.org/10.1016/j.iref.2013.07.005.
Chen, J.M., and C.I. Chang. 2012. The co-opetitive strategy of a closed-loop supply chain with remanufacturing. Transportation Research Part E-Logistics and Transportation Review 48 (2): 387–400. https://doi.org/10.1016/j.tre.2011.10.001.
Ding, J., W. Chen, and W. Wang. 2020. Production and carbon emission reduction decisions for remanufacturing firms under carbon tax and take-back legislation. Computers & Industrial Engineering 143: 106419. https://doi.org/10.1016/j.cie.2020.106419.
Ferguson, Mark E., and L. Beril Toktay. 2006. The effect of competition on recovery strategies. Production and Operations Management 15 (3): 351–368.
Ferrer, G., and J.M. Swaminathan. 2006. Managing new and remanufactured products. Management Science 52 (1): 15–26. https://doi.org/10.1287/mnsc.1050.0465.
Guide, V., R. Daniel, and Jiayi Li. 2010. The potential for cannibalization of new products sales by remanufactured products*. Decision Sciences 41 (3): 547–572. https://doi.org/10.1111/j.1540-5915.2010.00280.x.
Guo, J., H. Yu, and M. Gen. 2020. Research on green closed-loop supply chain with the consideration of double subsidy in e-commerce environment. Computers & Industrial Engineering 149: 106779. https://doi.org/10.1016/j.cie.2020.106779.
Hong, Xianpei, Zongjun Wang, Dezhi Wang, and Huaige Zhang. 2013. Decision models of closed-loop supply chain with remanufacturing under hybrid dual-channel collection. International Journal of Advanced Manufacturing Technology 68 (5–8): 1851–1865. https://doi.org/10.1007/s00170-013-4982-1.
Hong, Xianpei, Kannan Govindan, Xu. Lei, and Du. Peng. 2017. Quantity and collection decisions in a closed-loop supply chain with technology licensing. European Journal of Operational Research 256 (3): 820–829. https://doi.org/10.1016/j.ejor.2016.06.051.
Huang, Yanting, and Zongjun Wang. 2017. Closed-loop supply chain models with product take-back and hybrid remanufacturing under technology licensing. Journal of Cleaner Production 142: 3917–3927. https://doi.org/10.1016/j.jclepro.2016.10.065.
Huang, Min, Min Song, Loo Hay Lee, and Wai Ki Ching. 2013. Analysis for strategy of closed-loop supply chain with dual recycling channel. International Journal of Production Economics 144 (2): 510–520. https://doi.org/10.1016/j.ijpe.2013.04.002.
Jin, Minyue, Jiajia Nie, Feng Yang, and Yu. Zhou. 2017. The impact of third-party remanufacturing on the forward supply chain: A blessing or a curse? International Journal of Production Research 55 (22): 6871–6882. https://doi.org/10.1080/00207543.2017.1357860.
Karakayali, Ibrahim, Huelya Emir-Farinas, and Elif Akcali. 2007. An analysis of decentralized collection and processing of end-of-life products. Journal of Operations Management 25 (6): 1161–1183. https://doi.org/10.1016/j.jom.2007.01.017.
Liu, Huihui, Xiaohang Yue, Hui Ding, and G. Keong Leong. 2017. Optimal remanufacturing certification contracts in the electrical and electronic industry. Sustainability. https://doi.org/10.3390/su9040516.
Majumder, P., and H. Groenevelt. 2001. Competition in remanufacturing. Production and Operations Management 10 (2): 125–141.
Oraiopoulos, Nektarios, Mark E. Ferguson, and L. Beril Toktay. 2012. Relicensing as a secondary market strategy. Management Science 58 (5): 1022–1037. https://doi.org/10.1287/mnsc.1110.1456.
Shen, Chenran, Zhongkai Xiong, and Zhiqiang Peng. 2011. Decision and coordination research for the supply chain with retailer remanufacturing under patent licensing. Industrial Engineering and Management 16 (06): 10–15 (In Chinese).
Shen, Chenran, Zhongkai Xiong, and Weijun Meng. 2015. Remanufacturing modes of the closed-loop supply chain under patent protection. Journal of Systems & Management 24 (01): 123–129 (In Chinese).
Vorasayan, J., and S. Ryan. 2006. Optimal price and quantity of refurbished products. Production and Operations Management 15 (3): 369–383.
Wang, Yongbo, Guitao Zhang, Hu. Jinsong, Hao Sun, and Junpei Zhu. 2016. Multi-period closed-loop supply chain network equilibrium with distributor engaging in remanufacturing. Journal of Mechanical Engineering 52 (20): 201–212 (In Chinese).
Wu, Cheng-Han. 2012. Product-design and pricing strategies with remanufacturing. European Journal of Operational Research 222 (2): 204–215. https://doi.org/10.1016/j.ejor.2012.04.031.
Wu, Cheng-Han. 2013. OEM product design in a price competition with remanufactured product. Omega-International Journal of Management Science 41 (2): 287–298. https://doi.org/10.1016/j.omega.2012.04.004.
Wu, Xiaole, and Yu. Zhou. 2016. Does the entry of third-party remanufacturers always hurt original equipment manufacturers? Decision Sciences 47 (4): 762–780. https://doi.org/10.1111/deci.12194.
Xiong, Yu., Quanwu Zhao, and Yu. Zhou. 2016. Manufacturer-remanufacturing vs supplier-remanufacturing in a closed-loop supply chain. International Journal of Production Economics 176: 21–28. https://doi.org/10.1016/j.ijpe.2016.03.001.
Yan, Wei, Yu. Xiong, Zhongkai Xiong, and Nian Guo. 2015. Bricks vs. clicks: Which is better for marketing remanufactured products? European Journal of Operational Research 242 (2): 434–444. https://doi.org/10.1016/j.ejor.2014.10.023.
Yan, W., H.Y. Li, J.W. Chai, Z.F. Qian, and H. Chen. 2018a. Owning or outsourcing? Strategic choice on take-back operations for third-party remanufacturing. Sustainability 10 (1): 18. https://doi.org/10.3390/su10010151.
Yan, Wei, Junwu Chai, Zhifeng Qian, Sang-Bing. Tsai, Hong Chen, and Yu. Xiong. 2018b. Operational decisions on remanufacturing outsourcing involved with corporate environmental and social responsibility—A sustainable perspective. Sustainability. https://doi.org/10.3390/su10041132.
Zhao, D., H.M. Chen, X.P. Hong, and J.F. Liu. 2014. Technology licensing contracts with network effects. International Journal of Production Economics 158: 136–144. https://doi.org/10.1016/j.ijpe.2014.07.023.
Zheng, Benrong, and Liang Jin. 2022. Relicensing scheme selection in closed-loop supply chains with differentiated new and remanufactured products. Computers & Industrial Engineering 171: 108443. https://doi.org/10.1016/j.cie.2022.108443.
Zheng, Meimei, Xiaoqian Shi, Tangbin Xia, Win Qin, and Ershun Pan. 2021. Production and pricing decisions for new and remanufactured products with customer prejudice and accurate response. Computers & Industrial Engineering 157: 107308. https://doi.org/10.1016/j.cie.2021.107308.
Zhou, Yu., Yu. Xiong, Gendao Li, Zhongkai Xiong, and Matthias Beck. 2013. The bright side of manufacturingremanufacturing conflict in a decentralised closed-loop supply chain. International Journal of Production Research 51 (9): 2639–2651. https://doi.org/10.1080/00207543.2012.737956.
Zhou, Q., C. Meng, and K.F. Yuen. 2020. The impact of secondary market competition on refurbishing authorization strategies. International Journal of Production Economics 228: 107728. https://doi.org/10.1016/j.ijpe.2020.107728.
Zhou, Y., Y. Xiong, and M. Jin. 2021. Less is more: Consumer education in a closed-loop supply chain with remanufacturing. Omega-International Journal of Management Science 101: 102259. https://doi.org/10.1016/j.omega.2020.102259.
Zhu, Bingxin, Zhiqiang Ma, Wu. Ning, and L.E.O.N. Williams. 2018. Influence of original manufacturer’s patent protection on technological innovation strategy of remanufacturing supply chain. Computer Interated Manufacturing Systems 24 (09): 2329–2340 (In Chinese).
Zou, Zong-Bao., Jian-Jun. Wang, Gui-Shi. Deng, and Haozhe Chen. 2016. Third-party remanufacturing mode selection: Outsourcing or authorization? Transportation Research Part E-Logistics and Transportation Review 87: 1–19. https://doi.org/10.1016/j.tre.2015.12.008.