Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective

Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective

The remanufacturing warranty strategy has become an effective mechanism for reducing consumer risk and stimulating market demand in closed-loop supply chain management. Based on the characteristics of consumers’ behavior of purchase decisions, this paper studies the warranty decision model...

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Bibliographic Details
Main Authors: Xiaodong Zhu, Lingfei Yu, Ji Zhang, Chenliang Li, Yizhao Zhao
Format: Article
Language:English
Published: MDPI AG 2018-12-01
Series:Sustainability
Subjects:
remanufacturing
closed-loop supply chain
warranty decision
contract coordination
Online Access:https://www.mdpi.com/2071-1050/10/12/4738
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spelling doaj-1b42eb1380fd4c2fb77ea8edc6c97eff2020-11-24T22:52:12ZengMDPI AGSustainability2071-10502018-12-011012473810.3390/su10124738su10124738Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior PerspectiveXiaodong Zhu0Lingfei Yu1Ji Zhang2Chenliang Li3Yizhao Zhao4School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, ChinaSchool of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, ChinaFaculty of Health, Engineering and Sciences, University of Southern Queensland, Toowoomba, QLD 4350, AustraliaSchool of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, ChinaSchool of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, ChinaThe remanufacturing warranty strategy has become an effective mechanism for reducing consumer risk and stimulating market demand in closed-loop supply chain management. Based on the characteristics of consumers’ behavior of purchase decisions, this paper studies the warranty decision model of remanufacturing closed-loop supply chain under the Stackelberg game model. The present study discussed and compared the decision variables, including remanufacturing product pricing, extended warranty service pricing, warranty period and supply chain system profit. The research shows that consumers’ decision-making significantly affirms the dual marginalization effect of the supply chain system while significantly affecting the supply chain warranty decision; the improved revenue sharing contract and the two charge contracts respectively coordinates the manufacturer-led and retail-oriented closed-loop supply chain system, which effectively implements the Pareto improvement of the closed-loop supply chain system with warranty services. In the present study, the model is verified and analyzed by numerical simulation.https://www.mdpi.com/2071-1050/10/12/4738remanufacturingclosed-loop supply chainwarranty decisioncontract coordination
collection DOAJ
language English
format Article
sources DOAJ
author Xiaodong Zhu
Lingfei Yu
Ji Zhang
Chenliang Li
Yizhao Zhao
spellingShingle Xiaodong Zhu
Lingfei Yu
Ji Zhang
Chenliang Li
Yizhao Zhao
Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective
Sustainability
remanufacturing
closed-loop supply chain
warranty decision
contract coordination
author_facet Xiaodong Zhu
Lingfei Yu
Ji Zhang
Chenliang Li
Yizhao Zhao
author_sort Xiaodong Zhu
title Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective
title_short Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective
title_full Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective
title_fullStr Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective
title_full_unstemmed Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective
title_sort warranty decision model and remanufacturing coordination mechanism in closed-loop supply chain: view from a consumer behavior perspective
publisher MDPI AG
series Sustainability
issn 2071-1050
publishDate 2018-12-01
description The remanufacturing warranty strategy has become an effective mechanism for reducing consumer risk and stimulating market demand in closed-loop supply chain management. Based on the characteristics of consumers’ behavior of purchase decisions, this paper studies the warranty decision model of remanufacturing closed-loop supply chain under the Stackelberg game model. The present study discussed and compared the decision variables, including remanufacturing product pricing, extended warranty service pricing, warranty period and supply chain system profit. The research shows that consumers’ decision-making significantly affirms the dual marginalization effect of the supply chain system while significantly affecting the supply chain warranty decision; the improved revenue sharing contract and the two charge contracts respectively coordinates the manufacturer-led and retail-oriented closed-loop supply chain system, which effectively implements the Pareto improvement of the closed-loop supply chain system with warranty services. In the present study, the model is verified and analyzed by numerical simulation.
topic remanufacturing
closed-loop supply chain
warranty decision
contract coordination
url https://www.mdpi.com/2071-1050/10/12/4738
work_keys_str_mv AT xiaodongzhu warrantydecisionmodelandremanufacturingcoordinationmechanisminclosedloopsupplychainviewfromaconsumerbehaviorperspective
AT lingfeiyu warrantydecisionmodelandremanufacturingcoordinationmechanisminclosedloopsupplychainviewfromaconsumerbehaviorperspective
AT jizhang warrantydecisionmodelandremanufacturingcoordinationmechanisminclosedloopsupplychainviewfromaconsumerbehaviorperspective
AT chenliangli warrantydecisionmodelandremanufacturingcoordinationmechanisminclosedloopsupplychainviewfromaconsumerbehaviorperspective
AT yizhaozhao warrantydecisionmodelandremanufacturingcoordinationmechanisminclosedloopsupplychainviewfromaconsumerbehaviorperspective
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