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The case of a subsidized reverse supply chain in the Chinese electronics industry

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dc.affiliation.dptoUC3M. Departamento de Economía de la Empresaes
dc.contributor.authorYanzi, Zhang
dc.contributor.authorBerenguer Falguera, Gemma
dc.contributor.authorZhi-Hai, Zhang
dc.contributor.funderComunidad de Madrides
dc.contributor.funderAgencia Estatal de Investigación (España)es
dc.date.accessioned2024-01-12T18:05:00Z
dc.date.available2024-01-12T18:05:00Z
dc.date.issued2023-08-06
dc.description.abstractWe study a special environmental producer responsibility policy for the Chinese electronics industry that is based on awarding a per unit subsidy to qualified returned electronic products and ensuring a minimum producer collection volume while allowing larger collection volumes. Based on a real application from a Chinese electronics company that produces LCD TVs, our paper studies the optimal design of the product’s reverse supply chain when there is flexibility in settling the inspection locations of the returned products and flexibility in the volume of returned products collected. The problem is modeled as a nonlinear mixed-integer program and an efficient outer approximation-based solution approach is proposed. Analytical results and extensive numerical experiments based on this real application are conducted. Observations novel to the reverse logistics literature are related to the testing location decisions (upstream or downstream) and the optimal collection volumes of returned products. Particularly, we show how the government can stimulate the collection amount of returned products by increasing the unit subsidy and we also find that the company’s marginal benefit from improving the subsidy increases in a superlinear fashion. Furthermore, the highest collection volumes may not occur at the highest quality level of returned products for capacitated remanufacturers. The company can also be incentivized to increase the collection of returned products by permitting flexible testing locations. We also observe how the optimal testing locations vary for different levels of unit subsidy and different ratios of qualified and non-qualified returned products. Finally, conclusions and future research directions are provided.en
dc.description.sponsorshipThis research is partly supported by the National Natural Science Foundation of China (Grants 72101133, 72171129, 71991462, 72188101), Beijing Natural Science Foundation, China (Grant no. 9192011), China Postdoctoral Science Foundation, China [Grants 2021M701856]. Gemma Berenguer acknowledges financial support from Comunidad de Madrid, Spain (Excelencia Profesorado EPUC3M12), the Ramón y Cajal Fellowship Program, Spain (RYC2020-029303-I), and the Knowledge Generation Project, Spain (PID2021-127657NAI00), the latest two from the Spanish Ministry of Science and Innovation, Spain.en
dc.identifier.bibliographicCitationZhang, Y., Berenguer, G., & Zhang, Z.-H. (2024). A subsidized reverse supply chain in the Chinese electronics industry.Omega, Vol. 122, p. 10293.es
dc.identifier.doihttps://doi.org/10.1016/j.omega.2023.102937
dc.identifier.issn0305-0483
dc.identifier.publicationtitleOmegaes
dc.identifier.urihttps://hdl.handle.net/10016/39213
dc.identifier.uxxiAR/0000033922
dc.language.isoenges
dc.publisherElsevieres
dc.relation.projectIDComunidad de Madrid. EPUC3M12es
dc.relation.projectIDGobierno de España. PID2021-127657NA-I00es
dc.rights© 2023 The Author(s)en
dc.rightsAtribución-NoComercial 3.0 España*
dc.rights.accessRightsopen accessen
dc.rights.urihttp://creativecommons.org/licenses/by-nc/3.0/es/*
dc.subject.ecienciaEmpresaes
dc.subject.otherEnvironmental producer responsibilityen
dc.subject.otherReverse logisticsen
dc.subject.otherGovernment subsidyen
dc.subject.otherChinese electronics industryen
dc.subject.otherNonlinear mixed-integer programmingen
dc.titleThe case of a subsidized reverse supply chain in the Chinese electronics industryen
dc.typeresearch articleen
dc.type.hasVersionVoRes
dspace.entity.typePublication
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