A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Does Remanufacturing Always Benefit the Manufacturer and Hurt the Supplier?
Traditional wisdom claims that remanufacturing operations always benefit the manufacturer in monopolistic cases and hurt the supplier in a supply chain system. However, we show that this claim does not hold when firms face a mature market. In particular, we consider a case in which some consumers in the market possess old products before the selling season, i.e., some consumers are holders. A monopolistic manufacturer collects used products from holders and then sells the products to non-holders after furbishing and remanufacturing. In the integrated case, the manufacturer performs manufacturing and remanufacturing together. We find that remanufacturing may hurt the manufacturer when the fraction of non-holders in the market and the production cost are both low. In the separated case, in which an upstream supplier provides the core component to a downstream manufacturer, the downstream manufacturer undertakes the remanufacturing operation as well as manufacturing. We find that the supplier can benefit from the manufacturer’s remanufacturing operation under a specific condition, even if the manufacturer always receives a higher profit.
Does Remanufacturing Always Benefit the Manufacturer and Hurt the Supplier?
Traditional wisdom claims that remanufacturing operations always benefit the manufacturer in monopolistic cases and hurt the supplier in a supply chain system. However, we show that this claim does not hold when firms face a mature market. In particular, we consider a case in which some consumers in the market possess old products before the selling season, i.e., some consumers are holders. A monopolistic manufacturer collects used products from holders and then sells the products to non-holders after furbishing and remanufacturing. In the integrated case, the manufacturer performs manufacturing and remanufacturing together. We find that remanufacturing may hurt the manufacturer when the fraction of non-holders in the market and the production cost are both low. In the separated case, in which an upstream supplier provides the core component to a downstream manufacturer, the downstream manufacturer undertakes the remanufacturing operation as well as manufacturing. We find that the supplier can benefit from the manufacturer’s remanufacturing operation under a specific condition, even if the manufacturer always receives a higher profit.
Does Remanufacturing Always Benefit the Manufacturer and Hurt the Supplier?
Weisheng Deng (author)
2019
Article (Journal)
Electronic Resource
Unknown
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