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

Xiaodong Zhu (), Lingfei Yu (), Ji Zhang (), Chenliang Li () and Yizhao Zhao ()
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Xiaodong Zhu: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Lingfei Yu: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Ji Zhang: Faculty of Health, Engineering and Sciences, University of Southern Queensland, Toowoomba, QLD 4350, Australia
Chenliang Li: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
Yizhao Zhao: School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China

Sustainability, 2018, vol. 10, issue 12, 1-21

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.

Keywords: remanufacturing; closed-loop supply chain; warranty decision; contract coordination (search for similar items in EconPapers)
JEL-codes: Q Q0 Q2 Q3 Q5 Q56 O13 (search for similar items in EconPapers)
Date: 2018
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