Lai, Xuxin, Zhou, Li ORCID: 0000-0001-7132-5935 , Wang, Nengmin and Jia, Tao (2024) Harnessing the power of module markets for effective product recovery strategies. Managerial and Decision Economics. ISSN 0143-6570 (Print), 1099-1468 (Online) (doi:https://doi.org/10.1002/mde.4375)

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Abstract

This paper investigates how product modularity affects a manufacturer’s recovery strategy by constructing two trade-in models: one with a module market and another without. Our results reveal that opening a module market is not always profitable for the manufacturer, except when the module production cost is extremely low. When opening it is less profitable, the manufacturer can boost profits by raising the module price, increasing salvage value, and reducing costs through remanufacturing. Regarding collection quantity, our findings reveal that a module market, particularly with high module costs and durability, increases trade-in quantity, challenging the conventional expectations of market share erosion.

Item Type:	Article
Uncontrolled Keywords:	closed-loop supply chain; product modularity; trade-ins; remanufacturing; module replace
Subjects:	H Social Sciences > H Social Sciences (General) H Social Sciences > HB Economic Theory H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
Faculty / School / Research Centre / Research Group:	Greenwich Business School Greenwich Business School > Networks and Urban Systems Centre (NUSC) Greenwich Business School > Networks and Urban Systems Centre (NUSC) > Connected Cities Research Group (CCRG) Greenwich Business School > School of Business, Operations and Strategy
Last Modified:	09 Sep 2024 13:25
URI:	http://gala.gre.ac.uk/id/eprint/47846

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