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Managing Collecting Or Remarketing Channels:Different Choice For Cannibalization In Remanufacturing Outsourcing

Posted on:2022-07-15Degree:DoctorType:Dissertation
Country:ChinaCandidate:F ZhangFull Text:PDF
GTID:1489306524470644Subject:Business Administration
Abstract/Summary:PDF Full Text Request
With the increasing shortage of resources and environmental deterioration,governments and enterprises pay more and more attention to resource recycling and economic sustainability.Remanufacturing has been widely concerned by industry and academia,for it effectivelly realizes resource recycling and economic sustainability.In the practice of manufacturing industry,OEM should focus on both the competition of new product market and improving the maintenance and construction of their own brand.Therefore,they often outsource the remanufacturing business to the authorized third-party remanufacturer.It is no doubt that through remanufacturing outsourcing,the OEM can not only reduce the burden of their own equipment and technology,but also share the profits brought by the remanufacturing market.However,the remanufactured products seriously cannibalize the new product sales under the remanufacturing outsourcing strategy.Accordingly,some OEMs,such as Sun Microsystems and Lexmark,mitigate the cannibalization problems from the third-party remanufacturing products though collecting the used products;Whereas,other OEMs,such as apple,HP,and Bosch tools,mitigate the cannibalization problems from the third-party remanufacturing products though remarketing the remanufactured products.Based on the above practice background,this dissertation focuses on two channel strategies that the OEM can adopt: recycling channel strategy and remarketing channel strategy,and studies the remanufacturing operation management under the two different channel strategies from the perspective of economic performance and environmental benefits.Based on the background mentioned above,the third chapter discusses product cannibalization and channel strategies of remanufacturing outsourcing under the background of non-government regulation from economic and environmental benefits.The main conclusions are as follows: when the collection cost coefficient is not pronounced,the recycling channel strategy can deal with the problem of product cannibalization more efficiently.Under this strategy,the OEM can provide more new products in the market.When the collection cost coefficient is moderate,compared with the recycling channel strategy,the remarketing channel strategy can create a win-win result for both the OEM and the remanufacturer,so as to secure Pareto improvements.Furthermore,the research shows that the recycling channel strategy is greener than the remarketing channel strategy when the collectiong cost coefficient is greater than a certain threshold.Additionally,with the increase of remanufacturing cost,the profitability of OEM and remanufacturer decreases,while the environmental impact increases.By comparing with the previous research results,this dissertation explains the applicable conditions of the OEM’s recycling strategy,and further reveals the adverse effects of the manufacturer’s pursuit of profit maximization.Based on the above research results,this dissertation suggests that practising managers should combine the cannibalization problems of remanufacturing with the costs of collecting used cores.In order to promote the healthy sustainable development of remanufacturing industry,governments recently have formulated relevant policies and regulations These policies and regulations are mainly based on market mechanism and administrative order mechanism: Since the 1990 s,market-based regulatory policies have gradually emerged,such as carbon emission quota and carbon emission trading.For example,to impose carbon emissions on enterprises and restrict their production decisions,the European Union issued the European Union Emissions Trading Scheme in 2005 and China rolled out interim rules for carbon emissions trading management.Other mandatory policies,such as the WEEE Directive of the European Union,Japan’s SHARL household appliances recycling law,and China’s implementation plan of extended producer responsibility system,set specific recovery and recycling goals for manufacturing enterprises and recycling enterprises.How do these policies and regulations affect the choice of remanufacturing strategy and profitability? At the same time,how does remanufacturing decision-makers plan the optimal strategy under various policies and regulations? To answer these questions this dissertation extends the basic model of remanufacturing outsourcing in the case of no regulation to two cases with regulation policies.Considering the carbon emission regulation,the fourth chapter discusses the product cannibalization and channel strategy of remanufacturing outsourcing from economic and environmental benefits.Specifically,this dissertation builds a remanufacturing outsourcing supply chain model under carbon emission regulation to explore the effectiveness of different strategies of OEMs on cannibalization under carbon emission regulation,and further analyzes the impact of independent emission reduction investment on remanufacturing decision-making,income,and environmental benefits.The main conclusions are as follows: firstly,under the carbon emission regulation,the two channel strategies are still effective,that is,when the collection cost coefficient is not pronounced,and the recovery strategy is the best choice to deal with cannibalization.When the collection cost coefficient is moderate,the remarketing strategy can create win-win results for both the OEM and the remanufacturer.Secondly,the increase of investment emission reduction cost will increase the market demand for remanufactured products,resulting in a more serious cannibalization effect.At the same time,the profit and investment emission reduction level of OEMs will also be reduced.Finally,the total amount of carbon emissions decreases with the reduction of investment costs.When the collection cost coefficient is not large enough,the remarketing strategy is more environmentally friendly.From the perspective of environmental protection,this dissertation suggests that the government should encourage enterprises to develop carbon emission technology through subsidies to reduce the cost of carbon emission reduction investment and supply more low-carbon products.Considering the recycling regulation,the fifth chapter studies the cannibalization from remanufacturing outsourcing and channel strategies from economic benefits and environmental benefits.That is to say,the optimal strategy and boundary conditions of decision-makers under recycling regulation are analyzed by using the optimization method,and the influence of recycling rate target and reuse rate target on the remanufacturing level and profit is also discussed.The main conclusions are as follows:firstly,when remanufacturing has a cost advantage,both parties will choose remanufacturing more than regulatory objectives.Secondly,strict regulatory objectives do not always lead to a higher level of remanufacturing.Especially when remanufacturing has a cost advantage,the improvement of recovery rate will reduce the level of remanufacturing.Finally,there are significant differences in the impact of regulatory objectives on both sides’ profits under different modes.Only when the remanufacturing cost is less than a certain threshold,the OEM has the power to support the improvement of the recovery target.Based on the above research results,this dissertation suggests that the government and relevant environmental protection organizations should formulate corresponding recycling regulation policies according to different industry characteristics,product characteristics and remanufacturing cost advantages.The innovations of this dissertation are as follows:(1)Based on the practice background,this dissertation discusses the impact of recycling strategy and remarketing strategy on remanufacturing outsourcing and product cannibalization from the perspective of economy and environment.Based on the background of no regulation,starting from the "rational" feature of manufacturers’ pursuit of profit maximization,this dissertation puts forward some new management enlightenment,which provides a new management perspective for the operation research of remanufacturing supply chain.(2)This dissertation discusses the impact of the original manufacturer’s recycling strategy and remarketing strategy on remanufacturing outsourcing and product cannibalization under carbon trading regulation.Different from previous studies,this dissertation assumes that the OEM is the decision-maker and implementer of investment emission reduction.Although investment emission reduction only works on new products,the remanufacturer also indirectly shares the benefits of investment emission reduction from the remanufacturing process,so the competition and cooperation between the two sides become more complex.In addition,it is assumed that the party who sells products needs to pay a carbon tax to the government.Because the core in sales of remanufactured products is different under different strategies,this assumption poses new challenges to the solution of the model,and also makes this dissertation closer to reality.This dissertation not only provides a reference for enterprises to formulate operation strategies under carbon trading regulation,but also provides the decision-making basis for the government to formulate market regulation policies.(3)This dissertation discusses the optimal decision of the OEM in recycling strategy and remarketing strategy and its impact on product cannibalization under recycling regulation.Based on the analysis of the current recycling regulation policy,this dissertation introduces the two regulatory objectives of recycling rate and reuse rate into the model at the same time.It is found that the impact of these two parameters on the remanufacturing strategy is not synchronized,and the OEMs are more resistant to the recycling rate target.This dissertation provides a practical reference for the formulation of the e-waste recycling responsibility-sharing policy,and further enriches the recycling management theory of waste electrical and electronic products in China from the theoretical and practical level.
Keywords/Search Tags:Outsourcing remanufacturing, Cannibalization effect, Cap-and-trade regulation, Take-back regulation, Operation strategy
PDF Full Text Request
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