Remanufacturing mode choice considering consumer’s dual preference under patent licensing
Abstract Many original equipment manufacturers (OEMs) do not remanufacture by themselves, but instead license the remanufacturing business to other companies for a royalty. This paper examines to whom OEM should outsource remanufacturing when both distributors and independent third-party remanufactu...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Springer
2023-09-01
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| Series: | Management System Engineering |
| Subjects: | |
| Online Access: | https://doi.org/10.1007/s44176-023-00017-4 |
| _version_ | 1797556315805974528 |
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| author | Rui Ding Jinhua Zhao |
| author_facet | Rui Ding Jinhua Zhao |
| author_sort | Rui Ding |
| collection | DOAJ |
| description | Abstract Many original equipment manufacturers (OEMs) do not remanufacture by themselves, but instead license the remanufacturing business to other companies for a royalty. This paper examines to whom OEM should outsource remanufacturing when both distributors and independent third-party remanufacturers (TPR) are capable of remanufacturing. We have established three models: OEM licenses remanufacturing to the distributor (model DR); OEM licenses remanufacturing to TPR (model TR); OEM licenses remanufacturing to both the distributor and TPR (model DTR). We compared the optimal strategies of each member of the supply chain in the three models and analyzed the influence of consumers' dual preference for the remanufactured product on the decision making. The results showed that when consumers are reluctant to purchase a certain type of remanufactured product, OEM prefers to outsource the remanufacturing business to TPR. Otherwise, OEM prefers to license remanufacturing to both the distributor and TPR. In terms of two single remanufacturing modes, whether for OEM or TPR, TPR remanufacturing mode is always better than the distributor remanufacturing mode. |
| first_indexed | 2024-03-10T17:01:06Z |
| format | Article |
| id | doaj.art-9f01400340ee4651953f5701566762a4 |
| institution | Directory Open Access Journal |
| issn | 2731-5843 |
| language | English |
| last_indexed | 2024-03-10T17:01:06Z |
| publishDate | 2023-09-01 |
| publisher | Springer |
| record_format | Article |
| series | Management System Engineering |
| spelling | doaj.art-9f01400340ee4651953f5701566762a42023-11-20T10:59:06ZengSpringerManagement System Engineering2731-58432023-09-012112010.1007/s44176-023-00017-4Remanufacturing mode choice considering consumer’s dual preference under patent licensingRui Ding0Jinhua Zhao1School of Economics and Management, Wuhan UniversityFaculty of Artificial Intelligence in Education, Central China Normal University Wollongong Joint Institute, Central China Normal UniversityAbstract Many original equipment manufacturers (OEMs) do not remanufacture by themselves, but instead license the remanufacturing business to other companies for a royalty. This paper examines to whom OEM should outsource remanufacturing when both distributors and independent third-party remanufacturers (TPR) are capable of remanufacturing. We have established three models: OEM licenses remanufacturing to the distributor (model DR); OEM licenses remanufacturing to TPR (model TR); OEM licenses remanufacturing to both the distributor and TPR (model DTR). We compared the optimal strategies of each member of the supply chain in the three models and analyzed the influence of consumers' dual preference for the remanufactured product on the decision making. The results showed that when consumers are reluctant to purchase a certain type of remanufactured product, OEM prefers to outsource the remanufacturing business to TPR. Otherwise, OEM prefers to license remanufacturing to both the distributor and TPR. In terms of two single remanufacturing modes, whether for OEM or TPR, TPR remanufacturing mode is always better than the distributor remanufacturing mode.https://doi.org/10.1007/s44176-023-00017-4RemanufacturingDistributorThird-party remanufacturerConsumers’ preferencePatent license |
| spellingShingle | Rui Ding Jinhua Zhao Remanufacturing mode choice considering consumer’s dual preference under patent licensing Management System Engineering Remanufacturing Distributor Third-party remanufacturer Consumers’ preference Patent license |
| title | Remanufacturing mode choice considering consumer’s dual preference under patent licensing |
| title_full | Remanufacturing mode choice considering consumer’s dual preference under patent licensing |
| title_fullStr | Remanufacturing mode choice considering consumer’s dual preference under patent licensing |
| title_full_unstemmed | Remanufacturing mode choice considering consumer’s dual preference under patent licensing |
| title_short | Remanufacturing mode choice considering consumer’s dual preference under patent licensing |
| title_sort | remanufacturing mode choice considering consumer s dual preference under patent licensing |
| topic | Remanufacturing Distributor Third-party remanufacturer Consumers’ preference Patent license |
| url | https://doi.org/10.1007/s44176-023-00017-4 |
| work_keys_str_mv | AT ruiding remanufacturingmodechoiceconsideringconsumersdualpreferenceunderpatentlicensing AT jinhuazhao remanufacturingmodechoiceconsideringconsumersdualpreferenceunderpatentlicensing |