Abstract
Different stakeholders pay more attention to consumer education for remanufacturing. They expect to promote the advancement of the remanufacturing industry by increasing the number of consumers willing to pay for remanufactured products. In the context of consumer education, this paper investigates the influence of different collection and remanufacturing capabilities on the reverse channel designs. The results show that increased consumer education makes the OEM partially forgo the remanufacturing right and more focus on the control of the collection process of reverse channels. We further explore the impact of consumer education on different stakeholders. We find that consumer education significantly improves individual profits and supply chain profit. However, for consumers, the temperate consumer education is all-around desirable, and excessive consumer education will reduce consumer surplus. For the environment, only when the environmental friendliness of RPs is relatively high, improving consumer education will reduce the environmental impact. Furthermore, we also examine the reverse channel designs from multiple criteria and discover that profitability, consumers, and environmental goals can be consistent under certain conditions. Our study provides new insights for the design of reverse channels in the context of consumer education.
Highlights
With the aggravation of natural resource shortage and tightening of environmental regulations, the original equipment manufacturers (OEMs) need to be more responsible for their sustainability operations [33]
This paper investigates how the recycling efficiency and remanufacturing ability between the OEM and third parties (TPs) affect the design of the reverse channel from multiple criteria when considering consumer education activity
On the one hand, according to industrial practice, we have developed two new reverse channel designs: outsourcing the recycling business but controlling the remanufacturing process, outsourcing the remanufacturing process but controlling the recycling
Summary
With the aggravation of natural resource shortage and tightening of environmental regulations, the original equipment manufacturers (OEMs) need to be more responsible for their sustainability operations [33]. Some OEMs do not directly engage in used products business They usually outsource the recycling or remanufacturing process to TPs. The business outsourcing of used products is not a purely make-or-buy decision but involves a control transfer of reverse channel, which determines the recovery rate from customers and affects sustainable performance [11]. Due to the popularization of consumer education, more and more consumers are willing to buy RPs. The value of the remanufacturing market has increased, but the OEM has given control of partial business of remanufacturing market to TPs. The literature on the design of reverse channel usually does not consider the role of consumers [30, 42], they believe that all consumers are willing to pay for RPs. The reality is that some consumers are unwilling to buy RPs. The reality is that some consumers are unwilling to buy RPs Education can increase their willingness to purchase RPs, and many business leaders, environmentalists, and policymakers all engage in consumer education, such as Apple, Boeing, and Caterpillar.
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