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Full-Text Articles in Business
Distribution Channel Choice And Divisional Conflict In Remanufacturing Operations, Tianqin Shi, Dilip Chhajed, Zhixi Wan, Yunchuan Liu
Distribution Channel Choice And Divisional Conflict In Remanufacturing Operations, Tianqin Shi, Dilip Chhajed, Zhixi Wan, Yunchuan Liu
Faculty Publications
We consider a firm consisting of two divisions, one responsible for designing and manufacturing new products and the other responsible for remanufacturing operations. The firm will sell these new and remanufactured products either directly to the consumer (direct selling) or through an independent retailer (indirect selling). Our study demonstrates that a firm’s organizational structure can affect its marketing decisions. Specifically, a decentralized firm with separate manufacturing and remanufacturing divisions can benefit from indirect selling with higher firm profit, supply chain profit, and total consumer demand than direct selling. Moreover, this structure also induces a remanufacturable product design. In contrast, a …
Effects Of Remanufacturable Product Design On Market Segmentation And The Environment, Tianqin Shi, Wenjun Gu, Dilip Chhajed, Nicholas Petruzzi
Effects Of Remanufacturable Product Design On Market Segmentation And The Environment, Tianqin Shi, Wenjun Gu, Dilip Chhajed, Nicholas Petruzzi
Faculty Publications
Despite documented benefits of remanufacturing, many manufacturers have yet to embrace the idea of tapping into remanufactured-goods markets. In this article, we explore this dichotomy and analyze the effect of remanufacturable product design on market segmentation and product and trade-in prices by studying a two-stage profit-maximization problem in which a price-setting manufacturer can choose whether or not to open a remanufactured-goods market for its product. Our results suggest that it is optimal for a manufacturer to design a remanufacturable product when the value-added from remanufacturing is relatively high but product durability is relatively low and innovation is nominal. In addition, …