Presentation Information
[3K0504-06-03]Strategic remanufacturing and component sourcing in electric vehicle supply chain considering a money-back guarantee
○Juntao Wang1, Tsuyoshi Adachi2 (1. Henan University of Animal Husbandry and Economy, 2. Akita University)
Chairperson: ジョン サンヒ（秋田大学）、パク イルファン（北海道大学）
Keywords:
Remanufacturing,Component Sourcing,Circular Economy,Money-back guarantee,Hybrid Supply
The circular economy has attracted growing global attention, with remanufacturing recognized as a critical pathway to enhancing resource efficiency through cascade utilization. However, consumer concerns over the quality and reliability of remanufactured products continue to hinder market expansion, and the use of cheap and low-quality remanufactured components by remanufacturers exacerbates this concern. To address this, secondhand vehicle dealers have introduced money-back guarantee, yet its impacts on remanufacturing remain unclear. Against this backdrop, this study develops game-theoretic models to examine the effectiveness of such guarantee in remanufactured product markets under different market structures and component sourcing strategies. Specifically, we consider single and competitive remanufacturers as well as sole and hybrid sourcing of key components, and analyze how the refund guarantee influences sales volume, profitability, and optimal procurement decisions. The results show that the effectiveness of the money-back guarantee is governed by a threshold that is independent of market competition. Only when the guarantee’s influence exceeds this threshold does it stimulate sales of remanufactured products. This threshold increases with both component prices and failure rates, highlighting the importance of cost control and quality improvement. Furthermore, the effectiveness of the guarantee varies across sourcing modes. Under sole sourcing, procuring remanufactured components becomes advantageous for sales when the guarantee is sufficiently strong, with the threshold positively affected by remanufactured component prices and negatively affected by their failure rates. Profit-driven sourcing preferences depend jointly on the failure rates of new and remanufactured components and the discount rate. Under hybrid sourcing, the study identifies an optimal procurement proportion of remanufactured components, which increases with the strength of the refund guarantee, and shows that hybrid sourcing is preferred under a wide range of conditions.These findings provide theoretical insights into promoting remanufacturing and advancing circular economy development.