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<p>This paper investigates the joint optimization of pricing, extended warranty, and remanufacturing decisions in a closed-loop supply chain. Three operating modes, no remanufacturing, manufacturer in-house remanufacturing, and third-party remanufacturing, are analyzed using a Stackelberg game-theoretic framework that incorporates warranty sensitivity and product reliability. Results show that warranty extension creates a trade-off between increased customer value and higher servicing costs, leading to an optimal warranty duration. Numerical results indicate that manufacturer in-house remanufacturing generates <InlineEquation ID="IEq1"> <EquationSource Format="TEX">\(\varvec{80\%}\)</EquationSource> </InlineEquation> higher profit than third-party remanufacturing and <InlineEquation ID="IEq2"> <EquationSource Format="TEX">\(\varvec{62\%}\)</EquationSource> </InlineEquation> higher profit than no remanufacturing. Product reliability significantly influences pricing, demand, and profitability, while remanufacturing strategies affect consumer purchasing behavior. Robustness and Monte Carlo analyses confirm the superiority of the manufacturer’s in-house remanufacturing under most market conditions and parameter uncertainties. The findings demonstrate that jointly coordinating pricing, warranty, and remanufacturing decisions can substantially improve profitability and sustainability in closed-loop supply chains.</p>

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Optimal Pricing and Warranty Design in Closed-Loop Supply Chains with Remanufacturing: A Comparative Stackelberg Analysis

  • 期刊论文

  • 发表日期：

    2026年7月6日

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  • M. Mubashir Unnissa,
  • D. Prabu,
  • P. Jalapathy,
  • S. Bharathy

摘要

This paper investigates the joint optimization of pricing, extended warranty, and remanufacturing decisions in a closed-loop supply chain. Three operating modes, no remanufacturing, manufacturer in-house remanufacturing, and third-party remanufacturing, are analyzed using a Stackelberg game-theoretic framework that incorporates warranty sensitivity and product reliability. Results show that warranty extension creates a trade-off between increased customer value and higher servicing costs, leading to an optimal warranty duration. Numerical results indicate that manufacturer in-house remanufacturing generates \(\varvec{80\%}\) higher profit than third-party remanufacturing and \(\varvec{62\%}\) higher profit than no remanufacturing. Product reliability significantly influences pricing, demand, and profitability, while remanufacturing strategies affect consumer purchasing behavior. Robustness and Monte Carlo analyses confirm the superiority of the manufacturer’s in-house remanufacturing under most market conditions and parameter uncertainties. The findings demonstrate that jointly coordinating pricing, warranty, and remanufacturing decisions can substantially improve profitability and sustainability in closed-loop supply chains.