EURO 2025 Leeds
Abstract Submission

285. OEM's remanufacturing strategies under full and asymmetric information on used product collector’s efficiency in a reverse supply chain

Invited abstract in session WC-42: Product recovery and remanufacturing, stream Circular & Sustainable Supply Chains.

Wednesday, 12:30-14:00
Room: Newlyn GR.02

Authors (first author is the speaker)

1. Arjun Kumar
Department of Management Sciences, Indian Institute of Technology Kanpur
2. Sri Vanamalla Venkataraman
IIT Kanpur

Abstract

Firms adopt various sustainable methods to minimize carbon emissions. Remanufacturing is one of the effective methods to reduce carbon emissions while providing reduced cost benefits to firms. It uses end-of-life or used products as raw materials and transforms them into like-new end products, thus reducing cost and emissions significantly. Firms collect used products either themselves or they contract independent third-party collectors (TPCs) for the same. In this study we consider an original equipment manufacturer (OEM) producing two types of remanufactured products – high-grade remanufactured product and low-grade remanufactured product. The OEM contracts TPC to acquire used products. There are two types of TPCs who collects used products of high and low-quality. TPCs differ based on the proportion of high-quality used products collected and their collection efficiency. We first design a contract mechanism when OEM has full information about TPC’s collection efficiency. We also design a menu of contracts when the collection efficiency of TPC is his private information.

Keywords

Status: accepted


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