Optimal remanufacturing choices with manufacturer’s quality disclosure

Chen, S, Yang, L, Feng, L and Choi, TM ORCID: 0000-0003-3865-7043 (2026) Optimal remanufacturing choices with manufacturer’s quality disclosure Iise Transactions, 58 (1). pp. 89-104. ISSN 2472-5854, 2472-5862

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Abstract

In real-world operations, firms implement different combinations of strategies for quality disclosure and remanufacturing. However, it is unclear how these two strategies interact with each other. Motivated by real practice in industries such as automobile and electronics, this paper investigates the manufacturer’s quality disclosure strategy when remanufacturing is conducted by either itself or a third-party remanufacturer. We construct analytical models to integrate quality disclosure into remanufacturing operations and consider two types of remanufacturing, namely manufacturer remanufacturing (MR) and third-party remanufacturing (TR). Several interesting results are derived in our work: (i) With moderate remanufacturing savings, the manufacturer should induce the partial (full) remanufacturing strategy with disclosure (no disclosure) under both MR and TR scenarios. This indicates that the manufacturer could use the quality disclosure strategy to coordinate (affect) its remanufacturing (the third-party remanufacturer’s) operations strategy under MR (TR) scenario. (ii) MR may either enhance or reduce the manufacturer’s disclosure incentive, while TR always dampens it. (iii) Compared with MR, interestingly, from both ex-post and ex-ante perspectives, the manufacturer may prefer no remanufacturing (NR), even if the cost associated with remanufacturing is negligible. By contrast, compared with NR, the manufacturer will ex-post welcome the third-party remanufacturer to enter the market.

Item Type:	Article
Uncontrolled Keywords:	Quality disclosure, Information asymmetry, Remanufacturing, Competition, Cannibalization effect
Divisions:	Faculty of Humanities & Social Sciences Faculty of Humanities & Social Sciences > School of Management
Depositing User:	Symplectic Admin
Date Deposited:	05 Feb 2025 12:22
Last Modified:	28 Feb 2026 11:03
DOI:	10.1080/24725854.2025.2469270
Related Websites:	Author Publisher
URI:	https://livrepository.liverpool.ac.uk/id/eprint/3190121
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