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Process innovation for green product in a closed loop supply chain with remanufacturing

  • S.I. : Data-Driven Innovations: The Future of Innovation in Operations Management
  • Published:
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Abstract

The rapid development of green products, such as electric vehicle (EV) batteries, has brought about challenges in recycling and remanufacturing. To help tackle these challenges, in this research, we investigate how process innovation affects green product remanufacturing. Specifically, using game-theoretic models, we analyze process innovation strategies for green product remanufacturing in a closed-loop supply chain consisting of an upstream supplier and a downstream manufacturer. In these models, process innovation is implemented individually (i.e., non-cooperative mechanisms) by either the supplier or the manufacturer, or jointly (i.e., cooperative mechanism) by both firms. Our main findings are threefold. Firstly, process innovation can effectively improve remanufacturing performance while increasing the recovery rate of the manufacturer. Secondly, although the cooperative mechanism is always beneficial to the supplier, the supply chain and the environment, it may not be favourable by the manufacturer. Lastly, by extending the main models, we show that government subsidies can incentivise the manufacturer to adopt the cooperative mechanism, thereby achieving a win–win situation.

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Notes

  1. Available online: http://chuneng.bjx.com.cn/news/20191011/1012313.shtml (accessed on 26 March 2020).

  2. Available online: http://www.sohu.com/a/308962148_120044724 (accessed on 26 March 2020).

  3. Available online: http://www.bjnews.com.cn/auto/2019/03/27/561070 (accessed on 26 March 2020).

  4. Available online: https://www.360kuai.com/pc/9a372e4cef666b9c2?cota=3&sign=360_57c3bbd1&refer_scene=so_1 (accessed on 26 March 2020).

  5. Available online: http://finance.sina.com.cn/stock/relnews/hk/2019-07-10/doc-ihytcerm2646519.shtml (accessed on 30 March 2020).

  6. Available online: https://www.xianjichina.com/special/detail_410949.html (accessed on 30 March 2020).

  7. Available online: http://www.hbzhan.com/news/detail/131306.html (accessed on 26 March 2020).

  8. Available online: http://www.juda.cn/news/101832.html (accessed on 26 March 2020).

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Acknowledgements

The authors thank National Natural Science Foundation of China (Nos. 71872028, 71771188 and 71971043) and the Fundamental Research Funds for the Central Universities (Nos. JBK18JYT02, JBK1805008 and JBK190504).

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Authors and Affiliations

  1. School of Management and Economics, University of Electronic Science and Technology of China, Chengdu, 611731, China

    Junwu Chai & Zhifeng Qian

  2. Center for West African Studies of University of Electronic Science and Technology of China, Chengdu, 611731, China

    Junwu Chai

  3. Shanghai Business School, Shanghai, 201400, China

    Feng Wang

  4. School of Business Administration, Southwestern University of Finance and Economics, Chengdu, 611130, China

    Jing Zhu

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  1. Junwu Chai
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Correspondence to Zhifeng Qian.

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Chai, J., Qian, Z., Wang, F. et al. Process innovation for green product in a closed loop supply chain with remanufacturing. Ann Oper Res 333, 533–557 (2024). https://doi.org/10.1007/s10479-020-03888-y

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