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Does Environmental Education Always Contribute to Remanufacturing Supply Chain Development?
Chunmei Li1, Tianjian Yang1,2, Zijing Bian3
1School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China.
Summary
Environmental education boosts remanufacturing profits and sustainability. A third-party remanufacturer (3PR) offers benefits, especially with moderate education and low retailer capability, creating win-win scenarios.
Area of Science:
- Operations Research
- Environmental Economics
- Supply Chain Management
Background:
- Remanufacturing is a sustainable practice reducing resource use and pollution.
- Consumer acceptance of remanufactured products (RPs) is influenced by environmental education.
- Limited incumbent manufacturer capabilities necessitate exploring alternative remanufacturing channels like third-party remanufacturers (3PR).
Purpose of the Study:
- To analyze the impact of environmental education on a retailer's remanufacturing channel selection.
- To investigate the role of a third-party remanufacturer (3PR) in competitive markets.
- To determine conditions favoring 3PR adoption for profitability and environmental sustainability.
Main Methods:
- Development of an analytical model.
- Examination of retailer channel choice under in-store competition.
- Comparative analysis of different remanufacturing channel strategies.
Main Results:
- Consumer environmental education positively impacts retailer and supply chain profits.
- Temperate environmental education is consistently beneficial for 3PRs.
- 3PR introduction benefits consumers when retailer remanufacturing technology is low.
- 3PR enhances environmental sustainability when defective RPs have high impact and education is moderate.
- A win-win situation is achievable with 3PR when education and RP acceptance are within specific ranges.
Conclusions:
- Environmental education is a key driver for successful remanufacturing adoption.
- Third-party remanufacturers can improve supply chain efficiency and environmental outcomes.
- Strategic channel selection, considering education levels and technological capabilities, is crucial for maximizing benefits in remanufacturing.
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