Research On Pricing Model Of Supply Chain With Remanufacturing Based On Product Warranty

Because the undue pursuit of economic profit unilaterally in traditional manufacturing mode,the problems of ecological environment pollution, destroying and resource waste were neglected.Consumer environment awareness, government legislative Pressure, and economic incentives areforcing increasing firms and scholars to step in remanufacturing field.Most of the researches about the pricing model of closed-loop supply chain withRemanufacturing done by now are mainly focused on recycling and remanufacturing mode, theprice competition between new products and remanufactured products, consumer preferences forremanufacturing products, etc. However, the product warranty factor is ignored. Consumers areconcerned about the quality and performance of remanufactured product, which makes themanufacturers provide product warranty for the remanufactured products, powerful warranty ismuch more important to the consumers than the price on some content. In this paper, the literatureswhich are related to remanufacturing, product warranty and product warranty for remanufacturedproducts were reviewed. Then, aiming at the shortcomings of the previous research, we discuss thefollowing problems:(1) Considering market structure characteristics of the remanufacturing product, the studylocates the market environment of remanufactured products and new products as duopolycompetition. What’s more, we bring several kinds of factors in the model, including the productwarranty factor, the recycling of waste products and the remanufacturing cost. On the base of which,this paper builds the Stackelberg game model to study the equilibrium decisions and equilibriumprofit of closed-loop supply chain members.(2) Through theoretical derivations numerical analysis, this paper studies the relationshipbetween the equilibrium decisions and equilibrium profit of supply chain members and theparameters such as the recycling scale, product warranty investment scale, remanufacturing costsavings and competition parameters. Moreover, considering the remanufacturing cost savingadvantages, this paper makes a comparison between the equilibrium decisions and equilibriumprofit of closed-loop supply chain members by using the medium of cost saving.(3) From the aspects of raising consumer utility and obtaining more profits, this paper providesmeaningful conclusions for the remanufacturer, such as the options on remanufacturing cost,product warranty/recycling investing scale and the field of remanufacturing. This paper bringsmeaningful conclusions for the remanufacturing industry and the supply chain members, what’smore, this paper offers suggestions for the company who is ongoing remanufacturing enterprise and interested in entering the remanufacturing industry, thus stimulates the establishment anddevelopment of remanufacturing industry in our country.