Study On The Reverse Logistic Pricing Problem Considering The Product's Quality

In nowadays, socio-economic develops very fast. Environmental problems have attracted more attention. In order to balance socio-economic development and environment protection, foreign scholars have brought forward reverse logistic and closed-loop supply chain theory. Practice shows that these theories can actually bring economic interests to some enterprises. Recycling of waste products is a typical activity in reverse logistic and closed-loop supply chain management. Its pricing strategy is a key factor to determine the recovery and recycling successful or not. Quality is also an important part of the research in the closed-loop supply chain, and it has a major influence on the firms'sales and revenues. Considering the reality, using modeling quantitative analysis method, this paper studies the reverse logistic pricing issues considering the product's quality. The pricing issues includes pricing of the returned products and pricing of the recycled products.The main work of this paper is as follows:The pricing issues of the reverse logistic considering the product's quality are reviewed. This paper sorts and summarizes the correlative literatures, and finds the limitation of the research. Basing on this, this paper finds the opportunity and the meaning to study the pricing issues of the reverse logistic considering the product's quality.While formulating a return policy and quality policy, the firm has to determine the optimal return policy and the design quality. This paper recognizes the relationship between design quality, the firm's return policy and the firm's revenue, and develops a profit-maximization model to jointly obtain optimal policies for the product's quality level and the return policy. In this paper, we use quality as a strategic variable and focus on design quality. Appropriate level of design quality increases the desirability of the product. A generous return policy will also generate more demand for the product. The firm has to alter its quality policy and return policy according to the change of the market and the customer. We develop a profit-maximization model to help the firm obtain a number of managerial guidelines for using marketing and operational strategy variables to obtain the maximum benefit from the market.The firm has to recycle the returned products, and resale them in the secondary markets. As the returned products have different quality and different performance, the firm will use different methods to deal with them. Remanufacturing is one of different product recovery options (others are repair, refurbishing, cannibalization and recycling) which are classified based on the degree of disassembly and the quality level of the recovered product. Through different remanufacturing and disposal options, the firm obtained different recycled products, including remanufactured products and refurbished products, and so on. They can be sold in different secondary markets, satisfying different customers'demand. There might be more than one quality level of the remanufactured products, which could draw different prices in the secondary markets. In the fourth chapter, we develop a profit-maximization pricing model, and obtain the optimal prices for the recycled products, including remanufactured products and refurbished products. Finally, we use numerical experimentation to prove our conclusion.This paper brings forward a few opinions of the reverse logistic pricing issues considering the product's quality. In the end, the paper mentions several future research possibilities.