Refurbished products and supply chain incentives

Zhixin Chen (), Shijian Hong (), Xiang Ji (), Ruixia Shi () and Jie Wu ()
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Zhixin Chen: University of Science and Technology of China
Shijian Hong: Xiamen University
Xiang Ji: University of Science and Technology of China
Ruixia Shi: University of San Diego
Jie Wu: University of Science and Technology of China

Annals of Operations Research, 2022, vol. 310, issue 1, No 3, 27-47

Abstract: Abstract The emergence of online retail platforms and new retail technologies have enabled retailers to sell refurbished products to different markets, which exposes manufacturers to new challenges to control refurbished product market. This study investigates the incentives of supply chain members for refurbished products in a dual-channel supply chain. We examine the conditions under which the retailer is willing to sell refurbished products and the impact of refurbished products on manufacturer’s profits in three different cases, i.e., local market selling, across market selling, and dual market selling. Our results reveal that the manufacturer can effectively control the selling of refurbished products by a wholesale price contract when the retailer can only deliver refurbished products to her local market. However, when the retailer has the ability to deliver refurbished products into a cross-border market, supply chain members encounter different incentives for refurbished products.

Keywords: Refurbished products; Supply chain incentives; Dual market; Retailer encroachment (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (4)

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DOI: 10.1007/s10479-021-04016-0

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