Abstract

To reduce environmental pollution, the government has issued relevant laws and regulations, and more and more enterprises engage in remanufacturing and recycling used products. Trade old for new and trade old for remanufactured have become marketing means to promote product recycling. The extended warranty service is used to promote the recycling of waste products. To design an optimal extended warranty service strategy and analyze its environment impact in a remanufactured supply chain, game theory is used to model the competitive relationship between a manufacturer and an E-commerce platform. Considering whether the E-commerce platform provides extended warranty service, four models are constructed, and the extended warranty service strategy and its environment impact can be analyzed. The results show that, when the level of substitutability between remanufactured and new products meets a certain rage, new or remanufactured products with extended warranty service strategy can increase the demand for new or remanufactured products, respectively. In the four models, the changing trends of manufacturer’s profit, E-commerce platform’s profit and supply chain’s profit, consumer surplus, environmental impact and social welfare are the same, but only the thresholds are different. From the perspectives of supply chain member, supply chain system, consumer, environment and society, the new and remanufactured products with extended warranty service strategy is the best choice.

Highlights

  • M wholesales new and remanufactured products to E, and E sells these products to consumers by two ways: TON and TOR

  • The decisions of the remanufactured supply chain (RSC) members were investiwarranty strategy with “trade old for new” and “trade old for remanufactured” is one gated, and the effects of the extended warranty services (EWS) on consumer surplus, environment impact and society way of reducing carbon emissions, which has been used in many countries, such as the welfare were analyzed

  • This study reviewed the literature on the theory and practice of extended warranty service, “trade old for new” and “trade old for remanufactured”, which have been implemented in many countries

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Summary

Introduction

Publisher’s Note: MDPI stays neutral with regard to jurisdictional claims in published maps and institutional affiliations. In order to promote the future development of the recycling and remanufacturing industry, more companies choose to provide good warranty services to reduce the impact of consumers’ cognitive preferences [23,24,25,26]. JD.com displays different extended warranty services for consumers to choose from (https://www.jd.com/pinpai/982-140289.html, accessed on 24 January 2022). More E-commerce platforms have set up different extended warranty service options in their product purchase interfaces These services increase consumers’ willingness to buy and promote the good operation of the supply chain’s forward sales and reverse recycling [27]. How do the factors such as consumers’ sensitivity to the EWS length affect the demands of new and remanufactured products, the profits of supply chain members and the remanufactured supply chain system, consumer surplus, environment impact and social welfare with the coexistence of TON and TOR?.

Remanufatured Supply Chain Management
Recycling Strategy of TON or TOR
EWS Strategy
Problem Description
Assumptions and Parameters
Model Formulations
Sensitive and Comparative Analysis of Equilibrium Results
Numerical Analysis
Impacts of Parameters k and b on Decisions of RSC
Findings
Conclusions
Full Text
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