Study On The Pricing And Ordering-policy Of Retailer When Considering About Recovery Products

With the development of the research in supply chain management and reverse logistics, the sense of lose-loop supply chain has be affirmed more and more by the academicians. Also due to the conflict between the economic development and the shortage of the natural resource and the deeply deteriorated environment, the re-use of the waste products and the implementation of the reverse supply chain seem to be more and more useful. For the recycle parts, according to their own quality and the difficulty grade in re-use, we can adopt several different disposal patterns like maintenance, product recovery, remanufacture and so on. Because the process of re-use comprise the stripping of the old ones and the remanufacturing of the re-use ones, both of these need some technology in core to accomplish them, which is mostly in control of the manufactures. So in the past research about this area, the main body is mainly about the manufactures. But with the development of the market economy and also the enhancement of the self-strength, some retailers deeply take on some abilities in core, to help them to face the growing furious competition and to promote the service level. At the same time, because of the technology they have had, which is totally enough to satisfy the need about re-manufacturing, the retailers may have the chance to considering about developing their own re-used products now, which can really make great benefit.Just on base of this background, I consider a technology-owned retailer, who sells series products with different grades which include the advanced one and the base one. Now to mount up the self-benefit, the retailer try his own way to recycle the waste parts of the advanced products from the market and re-use of them. Then after the process of the disposal of these products, the retailer gets the recovery ones to sell at the same market. Then with the inducting of the recovery ones, the retailer has something to make good decisions. The first one is how to set good position of the recovery ones in the whole market among the several grades of new products and also how to make good connections of the products with different grades including of the recovery one.In this paper, on base of the summarize of the achievements in the past, I choose the object as a technology-owned retailer, considering when the retailer try his own way to recycle and disposal the waste advanced products he has sell and get the recovery ones to sell at the same market with grades of new ones. In the process, I define the price, the output of the recovery ones and also the order quantity of the advanced new parts as the decision variables. In the considering about the connection between the recovery product and the new ones, I enter on from two types of influence:the price-driven substitution and the inventory-driven substitution. In these two situations, we develop two profit-maximization pricing models and then I employ optimization theory and method to solve the models and get the best decisions we want. At last, I conduct numerical analysis about 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.