Topic:On the CompetitionbetweenTwo Modes of Product Recovery: Remanufacturing and Refurbishing

Speaker:Fangruo Chen

Affiliation:Columbia University

Time:Monday, 25 May 15:00-16:30 P.M

Location:Room K02, Guanghua Building 2

Abstract:The markets for recovered products in China typically consist of both remanufactured and refurbished products. The government requires that the remanufactured product match the quality level of the new product, while no such requirements exist for the refurbished product. Furthermore, remanufacturing is a relatively new phenomenon in China, whereas the refurbishing industry is old, widespread, and largely unregulated. Compared to the new product, the two types of recovered products enjoy a cost advantage, but they suffer from a lower willingness-to-pay in the consumer market simply because they are not new. These observations lead to a game-theoretic model consisting of three players: an OEM providing the new product, a remanufacturing firm, and a refurbishing firm. The goal is to understand what equilibrium market structures may arise and how the equilibrium outcome depends on some of the key model parameters. Special attention is paid to the competition between the remanufacturer and the refurbisher, with potential implications for the government’s role in cultivating the remanufacturing industry.

Bio:Fangruo Chen is the MUTB Professor of International Business at the Graduate School of Business, Columbia University.

Professor Chen’s main research areas are operations management, supply chain management, and operations strategy. He has published extensively in the field’s top academic journals such as “Management Science,”“Operations Research,”“Manufacturing & Service Operations Management,” and “Production and Operations Management.”His research addresses a broad spectrum of strategic issues such as strategic alignment, capacity planning, demand forecasting, procurement/supplier management, production/service system designs, quality management, information technology, sustainable operations, corporate social responsibilities, etc.

Professor Chen received the prestigious CAREER Award from the National Science Foundation (USA), 1997. In 2004, he received the Distinguished Overseas Young Investigator Award from the National Natural Science Foundation of China. In 2005, he was appointed the Distinguished Visiting Professor by the Chinese Academy of Sciences. In 2006, he was named the Chang Jiang Scholar by the Ministry of Education, China. In the same year, he became a Special Term Professor at the Guanghua School of Management, Peking University, China.

Professor Chen held, and continues to hold, numerous leadership positions in his profession: Area Editor for“Operations Research”(responsible for the Manufacturing, Service, and Supply Chain Operations area), Departmental Editor for “Management Science”(Supply Chain Management Department), Senior Editor for“Manufacturing & Service Operations Management,” andEditorial Board Member of“Marketing Science.”In 2006, he served as the President of theManufacturing & Service Operations Management (MSOM) Society in the U.S. From 2006 to 2012, he was the Dean-By-Special-Appointment at the Antai School of Management, Shanghai Jiaotong University. In 2007, he founded the Overseas Chinese Scholars Association in Management Science and Engineering (OCSAMSE), which subsequently was renamed CSAMSE (Chinese Scholars Association for Management Science and Engineering). He is the current President of CSAMSE. In 2009, he spearheaded the China Business Initiative (CBI) of the Chazen Institute of International Business at Columbia Business School, and is the current director of the CBI.

Professor Chen holds a B.S. in Ship Building and Ocean Engineering from Shanghai Jiao Tong University in China, an M.S. in Systems Engineering from the University of Pennsylvania’s Moore School of Engineering and Applied Sciences, and an A.M. in Managerial Economics and Social Sciences and a Ph. D. in Operations Management from the University of Pennsylvania’s Wharton School.

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