Closed-loop Supply Chain Models With Extended Warranty Decisions

In recent years,with the continuous optimization of the government’s environmental protection policies,people’s awareness of environmental protection has been continuously enhanced,and the economics of remanufactured products have become increasingly prominent.Recycling and remanufacturing has been widely used in various industries,and more and more enterprises are beginning to engage in closed loop supply chain management.Extended warranty service as a new profit point for the company,and one of the most popular service methods,has covered most of the durable goods.Therefore,it is necessary to study the CLSC issue with extended warranty services.The same product,some consumers choose to buy,some do not buy,this is a problem in the field of consumer behavior research,and consumer risk aversion is one of the main directions of consumer behavior research,consumer risk aversion refers to a subjective attitude that consumers are willing to undertake uncertainty about future products and services.In this paper,for the CLSC model with extended warranty service,three reverse channels(manufacturer collecting,retailer collecting,third-party collecting)and two extended warranty service providers(manufacturer,retailer)are constructed from the perspective of whether considering consumer risk aversion.Six decentralized decision-making CLSC models based on the game theory method,studied the impact of reverse channel selection and extended service decision making on the overall CLSC decision.The study found that:(1)Regardless of the consumer’s risk aversion,whether the manufacturer or the retailer provides extended warranty,the retailer is the most effective bearer of product collecting,at this time the manufacturer,the retailer and the entire CLSC get the highest profit and the product return rate is highest.(2)Regardless of the consumer’s risk aversion,whether the manufacturer,the retailer or a third party is responsible for collecting the used product,the total profit of the CLSC when the retailer provides the extended warranty service is higher than when the manufacturer provides the extended warranty service.(3)When considering consumer risk aversion,whether the manufacturer or the retailer provides extended warranty,the retailer is the most effective bearer of product collecting,at which point the manufacturer,the retailer and the entire CLSC can get the maximum profit,and the product return rate is also the highest.(4)When considering consumer risk aversion,whether the manufacturer,the retailer or a third party is responsible for collecting the used product,the total profit of the CLSC when the retailer provides the extended warranty service is equal to the situation when the manufacturer provides the extended warranty service.