Recycling Channel Selection for a Manufacturer Involving Consumers' Green-Return Behavior

Consumers' green-return behavior (CGRB) plays an increasingly crucial role in sustaining the environments in practice. Little, however, is known about its impact on manufacturer's recycling decisions, such as recycling channel selection and recycling price. To contribute to practice and th...

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Bibliographic Details
Published in:IEEE transactions on engineering management 2024-01, Vol.71, p.8761-8776
Main Authors: Hong, Zhaofu, Chu, Jun, Zhang, Linda L., Wang, Nannan
Format: Article
Language:English
Subjects:
Behavioral sciences
Business administration
Consumer behavior
Consumers' green-return behavior (CGRB)
Costs
Decisions
Green products
Humanities and Social Sciences
Manufacturers
Mobile handsets
Production
Recycling
recycling channel selection
remanufacturing
Salvage value
Sensitivity
sustainable operations management
third-party recycler
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Summary:Consumers' green-return behavior (CGRB) plays an increasingly crucial role in sustaining the environments in practice. Little, however, is known about its impact on manufacturer's recycling decisions, such as recycling channel selection and recycling price. To contribute to practice and the literature, this study examines how a manufacturer makes recycling decisions considering CGRB. More specifically, we develop a recycling quantity function to reveal the dependence of recycling quantities on CGRB and model the manufacturer's recycling decision making in a self-recycling channel and a third-party recycling channel. We analyze the economic and environmental performances of the two recycling channels and obtain interesting results and important managerial implications. The side payment of recycling and the salvage value of used products are important factors for the manufacturer to determine whether to perform or not product recycling and further select recycling channels. Additionally, affected by CGRB, their specific values change the manufacturer's recycling strategies. Moreover, with the weakening of CGRB, the manufacturer prefers to choose the third-party recycling channel. At last, we find that neither recycling channel presents overwhelming superiority over the other in environmental performance when involving CGRB.
ISSN:0018-9391
1558-0040
DOI:10.1109/TEM.2023.3300512