Optimal remanufacturing strategy and blockchain adoption decisions in supply chains with consumers’ anticipated regret

In this paper, we explore the impact of consumers’ anticipated regret on remanufacturing strategies and decisions regarding blockchain adoption. We analyse four Stackelberg models based on whether the original equipment manufacturer (OEM) or the third-party remanufacturer (TPR) adopts blockchain, as well as whether they choose outsourced or authorised remanufacturing strategies. Through reverse induction, we derive the optimal decisions for both the OEM and TPR. Our analytical results yield four key findings: (1) Increased sensitivity to anticipated regret among consumers motivates the OEM to adopt blockchain, while the TPR is more likely to embrace blockchain when consumers exhibit lower sensitivity to regret expectations. (2) The OEM and TPR can achieve higher profits under outsourced and authorised remanufacturing strategies, respectively; however, an increase in consumer anticipated regret may negatively affect OEM profits while enhancing TPR profits. (3) Consumers’ anticipated regret can reduce the demand for new products (NPs) while simultaneously increasing the demand for remanufactured products (RPs). Additionally, we consider the differing bargaining powers of the OEM and TPR in the extension section. Our conclusions provide valuable managerial insights for supply chain managers in their remanufacturing decisions.