RT Journal Article
T1 The case of a subsidized reverse supply chain in the Chinese electronics industry
A1 Yanzi, Zhang
A1 Berenguer Falguera, Gemma
A1 Zhi-Hai, Zhang
AB We 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.
PB Elsevier
SN 0305-0483
YR 2023
FD 2023-08-06
LK https://hdl.handle.net/10016/39213
UL https://hdl.handle.net/10016/39213
LA eng
NO This research is partly supported by the National Natural ScienceFoundation of China (Grants 72101133, 72171129, 71991462,72188101), Beijing Natural Science Foundation, China (Grant no.9192011), China Postdoctoral Science Foundation, China [Grants2021M701856]. Gemma Berenguer acknowledges financial supportfrom 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.
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