Research on Pricing Strategy of the Closed-Loop Supply Chain in Heterogeneous Market

Article Preview

Abstract:

This paper constructs a closed-loop supply chain system with the manufacturer recycling waste products from the retailer based on game theory in heterogeneous market in which the price of the new product is different from that of the remanufactured product. The optimal pricing decisions of the supply chain without remanufacturing and the closed-loop supply chain with remanufacturing are obtained. Through theoretical analysis and numerical simulation, we obtain the optimum production and pricing strategies, and analyze the impact of the consumers’ acceptance for the remanufactured product on product pricing, which provides a basis for the closed-loop supply chain’s production decisions.

You might also be interested in these eBooks

Info:

Periodical:

Pages:

321-325

Citation:

Online since:

November 2012

Authors:

Export:

Price:

[1] R.C. Savaskan, S. Bhattacharya, L.N. Van Wassenhove, Closed-loop supply chain models with product remanufacturing, Management Science. 50 (2004) 239-252.

DOI: 10.1287/mnsc.1030.0186

Google Scholar

[2] Heese, H. S., K. Cattani, G. Ferrer, W. Gill, A. V. Roth, Competitive advantages through take-back of used products, European Journal of Operational Research. 164 (2005) 143-157.

DOI: 10.1016/j.ejor.2003.11.008

Google Scholar

[3] C.H. Lee, B. Rhee, Channel coordination using product returns for a supply chain with stochastic salvage capacity, European Journal of Operational Research. 177 (2007) 214-238.

DOI: 10.1016/j.ejor.2005.10.044

Google Scholar

[4] Debo, L., Toktay, B., Van Wassenhove, L. N, Market segmentation and production technology selection for remanufacturable products, Management Science. 5(2005) 1193-1205.

DOI: 10.1287/mnsc.1050.0369

Google Scholar

[5] S. Flapper, J. Van Nunen, L.N. Van Wassenhove, Managing Closed-loop Supply Chains, Springer-Verlag, Berlin, (2005).

DOI: 10.1007/3-540-27251-8_18

Google Scholar

[6] Liang, Y., Pokharel, S., Lim , G.H., Pricing used products for remanufacturing, European Journal of Operational Research. 193(2009) 390-395.

DOI: 10.1016/j.ejor.2007.11.029

Google Scholar

[7] Majumder, P., Groenevelt, H., Competition in remanufacturing, Production and Operations Management. 10(2001)125-141.

DOI: 10.1111/j.1937-5956.2001.tb00074.x

Google Scholar

[8] Qu, X., Williams, J.A., An analytical model for reverse automotive production planning and pricing, European Journal of Operational Research. 190 (2008) 756-767.

DOI: 10.1016/j.ejor.2007.06.041

Google Scholar

[9] Ray, S., Boyaci, T., Aras, N., Optimal prices and trade-in rebates for durable, remanufacturable products, Manufacturing and Service Operations Management. 7(2005) 208-228.

DOI: 10.1287/msom.1050.0080

Google Scholar

[10] R.C. Savaskan, L.N. Van Wassenhove, Reverse channel design: The case of competing retailers, Management Science. 52 (2006) 1-14.

DOI: 10.1287/mnsc.1050.0454

Google Scholar

[11] V. Daniel R. Guide Jr., Luk N., Van Wassenhove, The evolution of closed-Loop supply chain research , Operation Research. 57 (2009) 10-18.

DOI: 10.1287/opre.1080.0628

Google Scholar

[12] J.W. Xu, Y.L. Zhu, X.Y. Huang, R.Z. Qiu, Research progress on closed-loop supply chain management, Systems Engineering. 26 (2008) 1-10 (In Chinese).

Google Scholar

[13] G. Ferrer, J. M. Swaminathan, Managing new and remanufactured products, Management Science. 52 (2006) 15-26.

DOI: 10.1287/mnsc.1050.0465

Google Scholar

[14] G. Ferrer, J. M. Swaminathan, Managing new and differentiated remanufactured products, European Journal of Operational Research. 203 (2010) 370-379.

DOI: 10.1016/j.ejor.2009.08.007

Google Scholar

[15] Kerr. W, Ryan C., A case study of photocopier remanufacturing at Fuji Xerox Australia, Journal of Cleaner Production. 9 (2001), 275-281.

Google Scholar