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Front. Eng    2024, Vol. 11 Issue (1) : 1-15    https://doi.org/10.1007/s42524-023-0251-7
Pricing and production strategies in remanufacturing from the perspectives of supply chain: Review and future directions
Kai LI1, Yan LI2(), Nenggui ZHAO2
1. School of Management, Hefei University of Technology, Hefei 230009, China; Key Laboratory of Process Optimization and Intelligent Decision-making, Ministry of Education, Hefei 230009, China
2. School of Management, Hefei University of Technology, Hefei 230009, China
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Abstract

Remanufacturing is widely recognized as beneficial to the environment and a circular economy. However, remanufacturing is more complex than traditional manufacturing due to the effects of government policy, uncertainty of consumer preferences, competition and cooperation among firms, and so on. These factors motivate academics to optimize remanufacturing outcomes, especially for product pricing and production. This study reviews the published literature on pricing and production strategies in remanufacturing from four perspectives of supply chain, namely, government policy, consumer characteristics, relationships among firms, and supply chain structures. Review results can benefit scholars/practitioners in the future by highlighting the challenges and opportunities in remanufacturing strategies.
Keywords remanufacturing      reverse and closed-loop supply chain      circular economy     
Corresponding Author(s): Yan LI   
Just Accepted Date: 09 March 2023   Online First Date: 03 April 2023    Issue Date: 13 March 2024
 Cite this article:   
Kai LI,Yan LI,Nenggui ZHAO. Pricing and production strategies in remanufacturing from the perspectives of supply chain: Review and future directions[J]. Front. Eng, 2024, 11(1): 1-15.
 URL:  
https://academic.hep.com.cn/fem/EN/10.1007/s42524-023-0251-7
https://academic.hep.com.cn/fem/EN/Y2024/V11/I1/1
Fig.1  Paper distribution from 2010 to 2021.
Fig.2  Four perspectives of the review.
Review perspective Subsection Number of papers
Governments Governments’ policy 25
Consumers Consumers’ preferences 20
Product quality 16
Members except for governments and consumers in the supply chain Channel selection 33
Competition and cooperation 31
Tab.1  Statistics of reviewed papers
Reference Key assumption Factors besides policies Goal Decisions besides pricing Objects of subsidy or carbon tax
Miao et al. (2018) Monopolist / * Production decisions 1
Han et al. (2017) Monopolist / * Production decisions 3
Hong et al. (2020) Monopolist Consumers are environmentally conscious * Production decisions 1 or 2
Wang et al. (2019b) Symmetric information / * Allocation of government subsidies 1 and 2
Zhou and Yuen (2020) Symmetric information Government budget constraint * / 3 and 4
Li et al. (2014) Symmetric information Carbon emission * Carbon emission quantities 5
Shu et al. (2018a) Remanufactured and new materials are the same / * and ** Recycling rate 1
Chen et al. (2020) Remanufactured and new products are the same Uncertainty returns * and *** Production decisions 1
Li et al. (2019b) Remanufactured and new products are the same The retailers fairness concern psychology * Recycling amount 6
Yenipazarli (2016) Product life is one period WTP * Production decisions 1
Cao et al. (2020b) Each replacement consumer owns one used product with the same value WTP * Consumer surplus 3
He et al. (2019a) All firms are rational, risk-neutral Sales channels, WTP * and ** Channel optimization 3
Wang et al. (2020b) E-platform is not the leader Remanufacturer’s altruistic preference * Profit of e-platform 1
Zhao et al. (2018) Consumers’ environmental preference WTP * Subsidy-sharing percentage 1 and 3
Choi (2017) / Branding effect * Brand investment decisions 1
Wang et al. (2018) Not all acquisitions can be remanufactured Donation quantity of remanufactured products * Production decisions 1
Wan and Hong (2019) All collected products are remanufactured / * Transfer price paid to the retailer 1 or 6
Tab.2  Summary of papers on government subsidy
Reference Measurement metric Expressive method
Zhao et al. (2018) Price elasticity of demand Consumers are ordered by the levels of their environmental preferences; non-green consumers have stronger substitution preference towards remanufactured products, that is, higher price elasticity than green consumers
Chen et al. (2019a) Word-of-mouth The total of consumers’ environmental preferences is the function of the fluctuation ratio of consumers’ environmental preferences with the word-of-mouth effect
Abbey et al. (2015a) Switch ratio Proportion of consumers who may switch from the new to the remanufactured product for a given price difference
Tab.3  Measurement metrics and expressive methods of consumers’ environmental preference
Reference Product type Method Quantity of returned products to be remanufactured Quantity of returned products
Cai et al. (2014) / Heuristic algorithm is developed based on Particle Swarm Optimization All All
El Saadany and Jaber (2010) A single product Extended economic production quality model All Part, the lowest quality level
Shu et al. (2018b) / Stackelberg game Part All
Xiong et al. (2014) Automotive engine A continuous-time Markov decision process All Part, basic condition requirements
Bulmus et al. (2014b) / Nonlinear programming All N types of returned products
Tab.4  Papers on product quality
Fig.3  Summary of ideas and possible research direction.
Fig.4  Supply chain structures.
Fig.5  Single channel for different products.
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