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Literature Review
Literature Review
Literature Review
Literature review
The paper lies at one streams of literature: (1) green products production research
2.1. Green products production research
Green products production research has been widely examined in the literature
(Thies et al. 2019). Chen (2001) examines mass marketing and market
segmentation with self-selection with non-green and green products. The mass
marketing strategy implies that only one kind of product is introduced and market
segmentation with self-selection refers to the case that both green and non-green
products are introduced in the market. The author considers the quantities and
prices decisions for green and non-green products and identifies that selling green
products could improve the environment and economic incentives. Shen, Xu, and
Choi (2019) study the impact of inventory service level on the selling sequence of
green and non-green products with environmental impact consideration. They find
that when the green product’s service level is lower than the non-green one’s,
selling the green product before the non-green ones could have the lower
environmental impact. Our paper is similar to Chen (2001) and Shen, Xu, and Choi
(2019) because we also consider both green and non-green products in production
research. Remanufactured products are one kind of green products. Ferrer and
Swaminathan (2010) examine remanufactured and new products in multi-periods.
They consider that the firm decides the differentiated prices for two products. Wu
(2012) investigates the pricing and service competition for new and
remanufactured products in a supply chain. Yenipazarli (2016) explores the optimal
strategy to manage new and remanufactured products with emissions regulation.
Mitra (2016) studies the optimal pricing for a hybrid manufacturing/remanufacturing
system. Hong, Wang, and Yu (2018) examine the pricing decision for green and
non-green products when considering asymmetric and symmetric information.
They find that information asymmetry significantly affects the green product pricing
strategy. Hong and Zhang (2019) evaluate a supply chain consisting of
manufacturer and remanufacturer, the former one produces the new product, and
latter one recycles the used products and produces the remanufacturing products.
They find that the remanufacturer is not able to satisfy market demand if the price
is sufficiently low. The remanufactured products are produced by recycled
materials. In this paper, we consider the products are green but do not consider the
product’s raw materials. Consistently with the literature and industrial practices, we
consider that the unit production cost of green product is higher than the non-green
one and the quality of the green product is more advanced than the non-green one
(Shen, Xu, and Choi 2019). Guo, Lee, and Swinney (2016) model the consumer
responses into the products from the responsible supplier with high cost but no
violation in production or/and the risky supplier who has a lower cost but is risky in
violation. Our paper follows the approach of Guo, Lee, and Swinney (2016) to
model the consumer behaviour of environmental consciousness. Guo, Lee, and
Swinney (2016) find that improving supply chain responsibility should have a
consumer-centric approach in which consumers’ WTP for responsibility or the
number of socially conscious consumers should be enhanced.
Choi (2017) analyses the pricing and advertising efforts for remanufacturing
products and explores the supply chain coordination mechanism for a
remanufacturing supply chain through the appropriate supply chain contract. Our
paper is close to Basiri and Heydari (2017). They consider sales efforts and quality
level for green products, which influence the market demand of green products.
They identify the coordination mechanism for green and non-green products supply
chain. Our paper differs by focusing on evaluating the quality difference between
green and non-green products, as well as product line design in terms of selling
non-green products only, selling green products only, and selling both green and
non-green products. We also discuss supply chain contract, but we attempt to
deepen our understanding by further examining the value of contract simplification,
assisting decision makers in the design of their real-world supply contracts (Shen,
Choi, and Chan 2019).
MY POINT OF VIEW
My article is about the main differences of green (ecological) and non-green (non-
ecological) products, meanwhile the author pronounces in 2001 that the market
introduces the two kinds of products but says that the sale of green products would
improve The environment and the economy.
On the other hand, remanufactured products are a type of ecological products as
they are the result of a restoration or a modification of others that had already been
manufactured and used before.