Extended warranty service strategy in green supply chain with asymmetric demand forecast

Zhibing Lin (), Haonan Xu () and Junchao Zhang ()
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Zhibing Lin: Fuzhou University
Haonan Xu: Fuzhou University
Junchao Zhang: Fuzhou University

Operational Research, 2025, vol. 25, issue 4, No 6, 27 pages

Abstract: Abstract This study examines the interaction between extended warranty service and demand forecast information sharing in a green supply chain. Key findings indicate: (1) The retailer shares demand forecast information only when consumer green sensitivity (CGS) exceeds a threshold, creating mutual benefits but requiring caution against the ‘precision trap’. (2) Although the paid extended warranty service (PEWS) is only beneficial to the retailer if and only if CGS is high or PEWS’s period is short, it is always beneficial to the manufacturer. (3) Information sharing incentivizes the manufacturer to offer PEWS, though PEWS positively influences information sharing only when the forecast expectation of manufacturer falls below that of retailer. (4) Comparative analysis reveals that free extended warranty service outperforms PEWS when CGS is low and PEWS’s period is moderate. The findings in this paper provide valuable references for the extended warranty service and information sharing decisions of green supply chain members.

Keywords: Paid extended warranty service; Free extended warranty service; Green supply chain; Information asymmetry; Information sharing (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s12351-025-00971-9

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