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Sustainability 2018, 10(12), 4738; https://doi.org/10.3390/su10124738

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

1
School of Management Science and Engineering, Nanjing University of Information Science and Technology, Nanjing 210044, China
2
Faculty of Health, Engineering and Sciences, University of Southern Queensland, Toowoomba, QLD 4350, Australia
*
Author to whom correspondence should be addressed.
Received: 4 November 2018 / Revised: 4 December 2018 / Accepted: 9 December 2018 / Published: 12 December 2018
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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. View Full-Text
Keywords: remanufacturing; closed-loop supply chain; warranty decision; contract coordination remanufacturing; closed-loop supply chain; warranty decision; contract coordination
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Zhu, X.; Yu, L.; Zhang, J.; Li, C.; Zhao, Y. Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective. Sustainability 2018, 10, 4738.

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