Impact of quality regulation policy on performance of a remanufacturing supply chain with non-waste returns

Danping Wen, Jing Li and Tiaojun Xiao

International Journal of Production Research, 2019, vol. 57, issue 11, 3678-3694

Abstract: Quality issues in a remanufacturing supply chain with non-waste returns have been reported many times. To address these issues, the government proposes different quality regulation policies. This paper develops a multi-agent simulation model to study how the quality regulation policy affects the performance of a remanufacturing supply chain with non-waste returns. Here, the main performance includes profit and hazard ratio of products. Our results indicate that self-regulation of the market cannot realize a desirable outcome (low hazard ratio and high manufacturer’s profit). Adjusting quality regulation probability is more efficient than adjusting the penalty for inferior products. From the view of increasing manufacturer’s average profit, or improving the government’s efficiency, the best policy is the solely adjusting supervision probability policy. From the view of reducing hazard ratio, the best policy is adjusting supervision probability- penalty policy. The appropriate penalty for inferior products can realize the desirable outcome. With an increasing supervision probability, the hazard ratio decreases, and the manufacturer’s average profit increases because the remanufacturing cost and penalty for inferior products decrease.

Date: 2019
References: Add references at CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://hdl.handle.net/10.1080/00207543.2018.1553316 (text/html)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:taf:tprsxx:v:57:y:2019:i:11:p:3678-3694

Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/TPRS20

DOI: 10.1080/00207543.2018.1553316

Access Statistics for this article

International Journal of Production Research is currently edited by Professor A. Dolgui

More articles in International Journal of Production Research from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().