Impact of fashion consumers on product durability design in a closed-loop supply chain
The emergence of fashion consumers in the market influences manufacturers'decisions of remanu-facturing and product durability design.A two-period closed-loop supply chain consisting of a manufacturer,a fashion consumer and a primary consumer is considered to investigate the impact of changes in consumer durability preference behaviour and the proportion of fashion consumers on manufacturers'remanufacturing,pricing and durability design decisions.Based on game theory,three durability design models are developed,and the corresponding analytical solutions are presented.The results show that whether a manufacturer engages in remanufacturing depends on the consumer durability sensitivity factor.The proportion of fashion consumers only affects the retail price of the second new product with a low level of durability and the remanufactured product with which it competes.The manufacturer should design products with a lower level of durability if the consumer durability sensitivity factor is small and the proportion of fashion consumers is high,otherwise it should design products with a higher level of durability.Finally,the base model is extended to analyse the robustness of manufacturers'product durability design decisions.
closed-loop supply chainfashion consumersproduct durabilitygame model