Research On The Product Warranty Strategy And Coordination Of Remanufacturing Closed-loop Supply Chain

Environmental pollution and resource shortages have become important problems that seriously hinder the sustainable development of human society.Remanufacturing is an important technical foundation for environmental protection industry and a high-level form of "recycling" of circular economy,which is one of the effective ways to solve environmental pollution and resource shortage.Although remanufactured products have the same quality as the new products,but the consumers still have amounts of scruple to buy remanufactured products due to some components of them composing of waste products.Loss aversion and risk aversion tendency may lead to low remanufactured product sales.Therefore,remanufactured products in the sale process often requires product warranty to improve consumers' purchase intention,and it will also increase a warranty cost that finally influences the operation of the remanufacturing closed-loop supply chain.Remanufacturing closed-loop supply chain is a supply chain system in the case of manufacturing and remanufacturing,which is a hot issue in academia nowadays.There are relatively rich achievements in the design of closed-loop supply chain network,the choice of recycling channels,the pricing mechanism of remanufactured products and the coordination of closed-loop supply chain.But the in-depth research on the impact of product warranty in the remanufacturing closed-loop supply chain system is rare.There are only a few papers in this area,but theyhavesome problems,such as the product warranty strategy is simple,the responsibility division is not clear and the market competition factors comprehensive consideration is not enough.The literatures of product warranty are also focused on the types of guarantees,costs and management of general products,but there is little coverage for remanufactured products warranty.Thus,starting from the perspective of product warranty,researching on the operation mechanism of remanufacturing closed-loop supply chain not only enriched the theory of remanufacturing development theory system,but also provide decision support for remanufacturing production companies in china.Using the method of the game theory,operational research tools and optimization theory,starting from the perspective of product warranty,the decision-makingmodel of the remanufacturingclosed-loopsupplychain adopted under cycleeconomicdevelopment was built and the decision-making process of manufacturers,retailers and the remanufacturing closed-loop supply chain were analyzed.In this thesis,the main content can be divided into the following four parts:Firstly,the author illustrates development course,research status,the related theory,existing problems and the development trend of remanufacturing closed-loop supply chain,product warranty and remanufactured product warranty,providing a theoretical basis for the follow-up study.Secondly,the decision-making boundary conditions of product warranty is discussed.Assuming that the provider of the product warranty is the manufacturer,we add the effect of product warranty period to the sales volume and cost of the remanufactured products in the manufacturer's profit function.We analyze the decision-making boundary conditions that provide warranty for remanufactured products by comparing the manufacturer's earnings to the remanufactured product.Thenwe extend the warranty service object,and explore the decision-making boundary conditions of the manufacturer both with warranty service for new products and remanufactured products.Thirdly,the selection criteria of how to choose the provider of product warranty is studied.The provider of product warranty can be the manufacturer,retailer or remanufacturing closed-loop supply chain.It is assumed that the manufacturer,retailer and closed-loop supply chain provide the same warranty period for the remanufactured product.Using the optimization theory,we build their profit functions to solve the optimal pricing,sale quantity of remanufacturing products and the system profit.After compared them,we choose the optimal product warranty provider to make the system achieving the highest levelof profit.Under the condition that the three parties provide different warranty periods,we further optimize the provider selection of product warranty.Finally,the coordination strategy adding the product warranty in the remanufacturing closed-loop supply chain is analyzed.Under the condition of the manufacturer provide the remanufactured product warranty,a Stackelberg game model by the manufacturer as the leader and the retailer as the follower is built,and the optimal profits of closed-loop supply chain system in decentralized decision-making mode and in centralized decision-making mode are solved.Compared these two modes,the reasons of the difference in profits is analyzed.We discuss the profit sharing contract that can be accepted and executed by the manufacturer and retailer in the decentralized decision-making mode,and realize the coordination of the closed-loop supply chain.We further extend the scope of product warranty to find the coordination strategy of remanufacturing closed-loop supply chain under the warranty of new products and remanufactured products.The innovations of this study are as follows:1.The product warranty isintroduced into the remanufacturing closed-loop supply chainand the decision boundaries of the product warranty are studied.The problemes of how to choose the product warranty providerand how to design the coordination strategy of remanufacturing closed-loop supply chain are investigated.These researches enrich the theoretical system of remanufacturing closed-loop supply chain and product warranty.2.In the process of studying the above problems,based on the analysis of the profit of the manufacturer,the retailer and the remanufacturing closed-loop supply chain,this thesis optimizes the warranty period of new products and remanufactured products.3.The selection range of the product warranty providers is expanded.Except the manufacturer,the retailer and the closed-loop supply chain also can provide product warranty.4.The object and strategy of product warranty are refined.In the study of decision boundaries of product warranty and remanufacturing closed-loop supply chain coordination strategy,we distinguish two conditions of product warranty,one onlyfor the remanufacturing products and the other both for remanufacturing and new products.In the discussion of the choice to the product warranty provider,it should be discussed that whether the product warranty periods are the same or not.These make the results more in line with the actual situation of the market.