Junfei Ding

Previous studies in operations management have extensively focused on how options positively affect supply chain profits in stochastic environments. In this study, we investigate when options are an appropriate strategy to follow from a new perspective of portfolio contract in the presence of random spot prices. In this setting, an instant purchase mechanism is considered to address overproduction once demand is realized. Specifically, we examine a novel portfolio contract that includes the instant purchase mechanism, wholesale contract, and option contract, taking into account uncertainties in demand and spot price. We also explore the two alternative portfolio contracts: one excluding the option contract (wholesale‐based contract) and the other excluding the wholesale contract (option‐based contract). Our results show that the presence of the instant purchase mechanism may impede the adoption of options during periods of overproduction. That is, options may not always provide benefits to supply chains. However, options prove beneficial in situations where overproduction is absent. Additionally, the instant purchase mechanism diminishes the positive impact of options when confronted with significant demand uncertainty. Surprisingly, the value of options becomes apparent in situations of low demand uncertainty, especially in the case of option‐based contracts, and also becomes evident as spot price uncertainty increases. Finally, we extend the model framework by studying the random unit revenue of final products and the uncertain exercise price. Our results also provide timely implications for when supply chains could possibly introduce options.

Previous studies have extensively examined the pricing decisions for new and remanufactured products while ignoring the manufacturer's leasing strategy and the anticipated regret of consumers generated from various choices, along with the valuation uncertainty of remanufactured products. This study targeted this research gap by investigating pricing decisions with consumers' anticipated regret in a leasing–selling closed‐loop supply chain (LSCLSC) wherein the manufacturer has four strategies: selling new and leasing remanufactured products (NR), selling and leasing new products (NN), selling remanufactured and leasing new products (RN), and selling and leasing remanufactured products (RR). Subsequently, these strategies were compared and the impact of anticipated regret was revealed. The results show that (1) the NN and RN strategies were the optimal leasing–selling strategies. (2) Consumers' anticipated regret was not always detrimental to the manufacturer. Under the NN and RN strategies, when consumers value remanufactured products more in the selling model than the leasing model, the manufacturer can reduce production costs and leverage consumers' anticipated regret, thereby increasing sales and rental prices and improving profits. However, when consumers value remanufactured products less in the selling model than the leasing model, anticipated regret has adverse effects. Therefore, manufacturers should decrease consumer sensitivity to anticipated regret to maximize profits. Our results provide timely insights for manufacturers to manage LSCLSC considering anticipated regret.

This study examines a manufacturer selling directly to customers has three modes for acquiring end‐of‐life vehicles with a key component supplier: supplier‐collection, manufacturer‐collection, and third‐party‐collection modes. We find that the supplier, who is farther away from customers, is the optimal agent to be responsible for recovery activity. Following, we design a simple transfer price contract for the supplier‐collection mode such that the recovery rate achieves the centralized level. Subsequently, a fixed payment is proposed to compensate the supplier, thereby realizing Pareto improvement. Finally, we consider the supplier as the Stackelberg leader and find opposite results regarding optimal reverse channel structure.

This study examines the effects of carbon options in hedging against the risk of carbon price fluctuation in a remanufacturing setting. Specifically, we develop an optimization model for a medical equipment enterprise that produces new products in the first period, and in the second period manufactures both new and remanufactured ones under a cap-and-trade mechanism. Since the carbon price is uncertain, carbon options are introduced for the enterprise to trade for carbon credits. We first study the scenario where carbon options are excluding as a benchmark, and then investigate the carbon options scenario. We show that for a given carbon emission reduction rate, the introduction of carbon options can decrease the remanufactured quantity in comparison to the case without carbon options. Additionally, the carbon emission reduction strategy of the enterprise can lower the optimal selling prices of the two products over these two periods. When the carbon emission reduction rate is given, our numerical analysis shows that introducing carbon options can enhance the overall consumer surplus over the two periods, but the first-period consumer surplus remains unchanged. After introducing carbon options, with the increased volatility in the carbon price, the optimal emission abatement rate decreases, while the total profits, consumer surplus, and environmental impact over the two periods increase and are higher than those in the scenario without carbon options.

The topic of this study is interesting, and it's been well completed. Maybe it's better to cite more references to support your study. In addtion, the Introduction section can be extended by providing more detailed background and motivation.

Motivated by the remanufacturing practice of construction machinery, this paper examines the impacts of different cooperation financing and carbon emission reduction (CER) strategies on the operational decisions in a closed-loop supply chain (CLSC) where the original equipment manufacturer (OEM) produces only new products and the capital-constraint retailer produces remanufactured products and sells both new and remanufactured products to consumers. Based on the cooperation level between the OEM and the retailer, four different financing strategies, including the non-cooperation financing (NCF), the supply chain carbon financing (SCCF), the partial cooperation with delay-in-payment financing (PCD), and the full-cooperation financing (FC), are explored. Meanwhile, we extend the proposed models by considering the CER strategy implemented by the OEM, and then investigate its impact on the optimal operational and financing decisions of the retailer. The results show that: i) Under different financing strategies, the CER strategy has no impact on the retail price of remanufactured products, but can help increase the market share of new products and strengthen the market value effect for the OEM. ii) Compared with the scenario without CER, the SCCF strategy can not only ease funding pressure than the NCF strategy for the retailer but also increase the CLSC profit under the CER strategy. iii) No matter which financing strategy is adopted, the CER strategy always has a squeezing effect on the market size of remanufactured products, i.e., the cannibalization effect. iv) The CER strategy is not conducive to the development of the remanufacturing industry, but can improve the environmental performance in terms of reducing emissions and increasing the market sales for new products.