Joint life-cycle dynamics of new and remanufactured products

• 成果类型: Article
• 署名作者: Debo, Laurens G.; Toktay, L. Beril; Van Wassenhove, Luk N.
• 署名单位: Carnegie Mellon University; University System of Georgia; Georgia Institute of Technology; INSEAD Business School
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• 发表日期: 2006
• 页码: 498-513
• 关键词: remanufacturing; product diffusion; closed-loop supply chains

摘要

M any products considered for remanufacturing are durables that exhibit a well-pronounced product life cycle-they diffuse gradually through the market. The remanufactured product, which is a cheaper substitute for the new product, is often put on the market during the life cycle of the new product and affects its sales dynamics. In this paper, we study the integrated dynamic management of a portfolio of new and remanufactured products that progressively penetrate a potential market over the product life cycle. To this end, we extend the Bass diffusion model in a way that maintains the two essential features of remanufacturing settings: (a) substitution between new and remanufactured products, and (b) a constraint on the diffusion of remanufactured products due to the limited supply of used products that can be remanufactured. We identify characteristics of the diffusion paths of new and remanufactured products. Finally, we analyze the impact of levers such as remanufacturability level, capacity profile and reverse channel speed on profitability.