The decision-making of internet recycler considering Internet-of-Things application

Abstract

PurposeThe primary aim of this study is to examine the decision-making process of a reverse supply chain within a cooperative-competitive environment, with a particular emphasis on the incorporation of Internet of Things (IoT) technology in the recycling process.Design/methodology/approachThe impact of IoT on recycling effectiveness, RF (refurbished) product demand and remanufacturing expenses is analyzed. The game-theoretic models are constructed to incorporate the co-competitive relationship between a IR (Internet Recycler) and a remanufacturer, with specific attention paid to the IR's application of IoT technology.FindingsThe results indicate that the use of IoT reduces the costs associated with remanufacturing, leading to an increase in the transfer price of pre-owned items procured from IRs. The efficacy of the reverse supply chain depends not only on its cost-saving capabilities but also on consumer preferences toward RF and remanufactured (RM) items.Practical implicationsIoT technology can benefit Internet recycling and remanufacturing by enhancing transparency, quality monitoring and automation of processes. It can also help reduce operating costs, improve customer engagement and incentivize cooperation between organizations.Originality/valueThis study examined the strategic decision-making processes in the context of cooperation and competition between IR and remanufacturers. In addition, this research makes a valuable contribution to the literature by elucidating the optimal conditions for the effective implementation of Internet of Things (IoT) technology in recycling operations.