Abstract
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.
Highlights
The recycling and reuse of electronic waste is currently a global concern, and remanufacturing provides an effective solution for used electronic products
In closed loop supply chain management, the length of the remanufactured product warranty period and extended warranty pricing play a key role in determining the total cost of the product (Shafiee and Chukova, 2013 [4])
Different from previous research, by considering a re-manufacturing closed-loop supply chain system with warranty services, where market demand is disturbed by consumer behavior, this paper studies the retail as the warranty subject, the optimal decision of supply chain for warranty pricing and warranty period and the contract coordination problem of supply chain
Summary
The recycling and reuse of electronic waste is currently a global concern, and remanufacturing provides an effective solution for used electronic products. Sabbaghi and Behdad (2012) [13] studied the impact of product characteristics, sales environment and market size on consumer purchasing decisions in the context of manufacturers providing warranty services. Based on the research above on warranty decision-making, it is found that there are few existing studies on the coordination of supply chain systems when strong retailers provide extended warranty services. The study of warranty decisions for remanufacturing closed-loop supply chains has less introduced consumer behavior theory. Different from previous research, by considering a re-manufacturing closed-loop supply chain system with warranty services, where market demand is disturbed by consumer behavior, this paper studies the retail as the warranty subject, the optimal decision of supply chain for warranty pricing and warranty period and the contract coordination problem of supply chain. We summarize our results and propose implications for future research
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
