A two-period model of product cannibalization in an atypical Closed-loop Supply Chain with endogenous returns: The case of DellReconnect

European Journal of Operational Research

Volumn 262, Issue 3, 2017, Pages 1009-1027

  Ramani, Vinay ^a   De Giovanni, Pietro ^b  

^a M L SUKHADIA UNIVERSITY   (India)

^b ESSEC BUSINESS SCHOOL   (France)

Author keywords

Cannibalization; DellReconnect project; Game theory; Product resale value; Product returns

Indexed keywords

GAME THEORY; MARKETING; PROFITABILITY; SALES; SUPPLY CHAINS;

BUSINESS OPPORTUNITIES; CANNIBALIZATION; CLOSED-LOOP SUPPLY CHAIN; CLOSED-LOOP SUPPLY CHAINS (CLSC); DELLRECONNECT PROJECT; PRODUCT CANNIBALIZATIONS; PRODUCT RESALE VALUE; PRODUCT RETURNS;

MANUFACTURE;

EID: 85017652847     PISSN: 03772217     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ejor.2017.03.080     Document Type: Article

References (43)

1. Agrawal, V., Atasu, A., van Ittersum, K., Remanufacturing, third-party competition, and consumers perceived value of new products. Management Science 61:1 (2015), 60–72.
2. Albuquerque, P., Bronnenberg, B.J., Estimating demand heterogeneity using aggregated aata: An application to the frozen pizza category. Marketing Science 28:2 (2009), 356–372.
3. Amrouche, N., Ben Rhouma, T., Zaccour, G., Branding decisions for retailers’ private labels. Journal of Marketing Channels 21 (2014), 100–115.
4. Atasu, A., Boyaci, T., Take-back legislation and its impact on closed-loop supply chains. Wiley encyclopedia of operations research and management science, 2010.
5. Bulmus, S.C., Zhu, S.X., Teunter, R., Competition for cores in remanufacturing. European Journal of Operational Research 233:1 (2014), 105–113.
6. Cachon, G.P., Supply chain coordination with contracts. Graves, S., de Kok, T., (eds.) Handbooks in operations research and management science: supply chain management, 2003, Amsterdam: North- Holland.
7. Chen, W., Kucukyazici, B., Verter, V., Sáenz, M.J., Supply chain design for unlocking the value of remanufacturing under uncertainty. European Journal of Operational Research 247:3 (2015), 804–819.
8. De Giovanni, P., Quality improvement vs. advertising support: which strategy works better for a manufacturer?. European Journal of Operational Research 208:2 (2011), 119–130.
9. De Giovanni, P., Environmental collaboration through a reverse revenue sharing contract. Annals of Operations Research 6 (2014), 1–23.
10. De Giovanni, P., State- and control-dependent incentives in a closed-loop supply chain with dynamic returns. Dynamic Games and Applications 4:1 (2015), 1–35.
11. De Giovanni, P., Reddy, P.V., Zaccour, G., Incentive strategies for an optimal recovery program in a closed-loop supply chain. European Journal of Operational Research 249:2 (2016), 605–617.
12. De Giovanni, P., Zaccour, G., A two period game of closed-loop supply chain. European Journal of Operational Research 232:1 (2014), 22–40.
13. Debo, L.G., Tokay, L.B., Van Wassenhove, L.N., Market segmentation and product technology selection for remanufacturable products. Management Science, 51(8), 2005, 1193-1205.
14. Desai, P.S., Quality segmentation in spatial markets: When does cannibalization affect product line design?. Marketing Science 20:3 (2001), 265–283.
15. Ferguson, M.E., Souza, G.C., Closed-loop supply chains:New developments to improve the sustainability of business practices (Supply Chain Integration Modeling, Optimization and Applications). 2010, Auerbach Publications.
16. Ferguson, M.E., Toktay, L.B., The effect of competition on recovery strategies. Production and Operations Management 15:3 (2006), 351–368.
17. Ferrer, G., Ketzenberg, M.E., Value of information in remanufacturing complex products. IIE Transactions 36:3 (2004), 265–277.
18. Ferrer, G., Swaminathan, J.M., Managing new and remanufactured products. Management Science 52:1 (2006), 15–26.
19. Ferrer, G., Swaminathan, J.M., Managing new and differentiated remanufactured products. European Journal of Operational Research 203:2 (2010), 370–379.
20. Genc, T.S., De Giovanni, P., Trade-in and save: A two-period closed-loop supply chain game with price and technology dependent returns. International Journal of Production Economics 183:B (2017), 514–527.
21. Ghose, A., Smith, M.D., Telang, R., Internet exchanges for used books: An empirical analysis of product cannibalization and welfare impact. Information Systems Research 17:1 (2006), 3–19.
22. Govindan, K., Soleimani, H., Kannan, D., Reverse logistics and closed-loop supply chain: A comprehensive review. European Journal of Operational Research 240:3 (2015), 603–626.
23. Green, P.E., Krieger, A.M., An application of a product positioning model to pharmaceutical products. Marketing Science 11:2 (1992), 117–132.
24. Guide, V.D.R., Li, J., The potential for cannibalization of new products sales by remanufactured products. Decision Sciences 41:3 (2010), 547–572.
25. Jorgensen, S., Zaccour, G., A survey of game-theoretic models of cooperative advertising. European Journal of Operational Research 237:1 (2014), 1–14.
26. Karray, S., Martin-Herran, G., Investigating the relationship between advertising and pricing in a channel with private label offering: A theoretic model. Review of Marketing Science, 6(1), 2008.
27. Karray, S., Martin-Herran, G., A dynamic model for advertising and pricing competition between national and store brands. European Journal of Operational Research 193:2 (2009), 451–467.
28. Karray, S., Zaccour, G., Could co-op advertising be a manufacturer's counterstrategy to store brands?. Journal of Business Research 59:6 (2006), 1008–1015.
29. Karray, S., Zaccour, G., Effectiveness of co-op advertising programs in competitive distribution channels. International Game Theory Review 9:2 (2007), 151–167.
30. Klemperer, P., Markets with consumer switching costs. The Quarterly Journal of Economics 1 (1987), 375–394.
31. van der Laan, E., Teunter, R.H., Simple heuristics for push and pull remanufacturing policies. European Journal of Operational Research 175:2 (2006), 1084–1102.
32. Meredith, L., Maki, D., Product cannibalization and the role of prices. Applied Economics 33:14 (2001), 1785–1793.
33. Oraiopoulos, N., Ferguson, M.E., Toktay, L.B., Relicensing as a secondary market strategy. Management Science 58:5 (2012), 1022–1037.
34. Ovchinnikov, A., Revenue and cost management for remanufactured products. Production and Operations Management 20:6 (2011), 824–840.
35. Rallo, J. (2016). The rise of refurbished products. https://www.liquidityservices.com/globalassets/blog/blogfiles/the-rise-of.pdf.
36. Savaskan, R.C., Bhattacharya, S., Van Wassenhove, L.N., Closed loop supply chain models with product remanufacturing. Management Science 50:2 (2004), 239–252.
37. Savaskan, R.C., Van Wassenhove, L.N., Reverse channel design: The case of competing retailers. Management Science 52:1 (2006), 1–14.
38. Sluis, S., De Giovanni, P., The selection of contracts in supply chains: An empirical analysis. Journal of Operations Management 41:1 (2016), 1–11.
39. Souza, G.C., Closed-loop supply chains: A critical review, and future research. Decision Sciences 44:1 (2013), 7–38.
40. Toktay, B., Wein, L.M., Zenios, S.A., Inventory management of remanufacturable products. Management Science 46:11 (2000), 1412–1426.
41. Vorasayan, J., Ryan, S.M., Optimal price and quantity of refurbished products. Production and Operations Management 15:3 (2006), 369–383.
42. Xiong, Y., Zhou, Y., Li, G., Chan, H.K., Xiong, Z., Don't forget your supplier when remanufacturing. European Journal of Operational Research 230:1 (2013), 15–25.
43. Yan, W., Xiong, Y., Xiong, Z., Guo, N., Bricks vs. clicks: Which is better for marketing remanufactured products?. European Journal of Operational Research 242:2 (2015), 434–444.