Study On Output And Pricing Decisions For Recovered Products

Product remanufacturing has been more and more prevailing because of the underlying economic benefits and people's more concern about environment pressure as well as stricter regulations. The introduction of return and remanufacture brought changes of the production cost structure and new uncertainties to enterprise. It is important issues for remanufacturing companies that how to optimize the output decision. And its pricing strategy is a key factor to determine the recovery and recycling successful or not. The degree of the differences on quality of recycled products more obvious is due to shorten period of product replacement and the uncertainty of the recovery itself, which have important impact on production, sales and revenue of the enterprise. Considering the reality, combined with the idea of revenue management, considering the uncertainty of the quality of recycled products, this paper studies the output decision and pricing policy for two kinds of retreating products (remanufactured product and refurbished product) under reverse supply chain environment, with modeling quantitative analysis method.The main work of this paper is as follows:The pricing and substitution issues of the reverse supply chain and quality different pricing 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 and substitution issues of the reverse supply chain considering quality differences.Considering reproduction and sales between a manufacturer and a manufacturer recycle bin in this paper. Recycle bin select the recovery of high quality to refurbish into refurbished products according to the standards established by manufacturers. Through develop a reasonable production strategy, the manufacturer will remanufacture the rest recyclables and obtained remanufactured products. They can be sold in different secondary markets, satisfying different customers'demand with different price.Based on the analysis of recovering process, considering uncertainty of the quality of recycled products, the relationship between market supply and demand and substitution between remanufactured product and refurbished product, defines the remanufacturing ratio, sales price of two kinds of recovered products and the substitution price as decision variables, and develop a profit-maximization pricing model. This paper employs optimization theory and method and matlab to solve the model, conducts numerical analysis the model, which display of the practical significance of the research.Finally, a summary of the full text is brought, points out the inadequacy, and further research directions.