Recently, corporations have realized how important sustainability has become. Because it is commonly viewed as a successful and ecologically conscious end-of-life management option for a range of items, product refurbishment has grown into a fascinating topic. Despite the fact that refurbishing offers several advantages, many manufacturers (OEMs) have chosen to outsource this process to retailers rather than engage in it themselves. On the other hand, OEMs should also think about plans for acquiring used products from the market as a crucial component of a closed-loop supply chain. As a result, the issue of whether OEMs should require retailers to manage their take-back operations arises. Two models have been developed to handle this problem, with the following options: (1) direct control of the reverse channel and core collection (Model D); or (2) delegating a retailer with these tasks and indirectly gathering cores (Model I). We divide the market into high end and low-end segments in this scenario. Instead of choosing to pay less for refurbished items, low-end buyers are more inclined to purchase new items. In the current study, we propose a construct where an assessment of the fraction of consumers who switch for a specific price gap influences firm decision-making. Our model is able to take into account such complex and realistic market behavior since it is not dependent on a willingness to pay (WTP). In addition, it is desirable to investigate if strategy produces better social and environmental outcomes. Using mathematical modeling, this study examines the benefits and drawbacks of several sustainability options. Based on our findings, direct collecting is more profitable for OEMs both economically and environmentally.

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