Study On Recycling Pricing With Quality Considered Under The Uncertainty Of Demand

In contemporary society, with recycling and manufacturing activities continuing in depth, and the constant improvement of national environmental laws, recycling and manufacturing activities have been paid more attention. As more consumers participate in recycling activities, it has inevitably leaded to imperfections. For discarded appliances consumers held, most of the informal recyclers provide a certain range of recovery price, according to the type and size of the appliances, with not considering the time having been used of discarded appliances, the current quality status and etc. The current recovery pricing system can not give consumers reasonable compensation.As to the irrational recycled pricing, this paper is based in the context that manufacturers recycle the used appliances. During the recovery process, they will consider the influence of some factors on recovery prices, such as the time since buying, price for new ones and the current quality status of the appliances, which is an innovative exploration. Considering demand uncertainty, in this paper there are two models with different pricing strategies, one will adopt a universal pricing strategy with a single recovery price, the other one will adopt a new pricing strategy considering the quality of the recycled, which will be described in detail. To prove the validity of the second model, a numerical example will be analyzed. Additionally, the new pricing strategies considering the quality of recycled will also be simulated.The work is mainly reflected in the following areas:(1) From a consumer’s point of view, the recovery pricing of reverse supply chain were reviewed, and noted the shortcomings of the current market and research. On such a condition, the recovery pricing strategy considering quality of used appliances in reverse supply chain has a great meaning.(2) We considered the quality classification of remanufactured goods. Assuming the existence of two remanufactured products markets, high-quality market and lower-quality market. Manufacturers produce high-quality remanufactured goods using recycled products of high quality through a simple renovation process, the remaining recycled items that can be remanufactured will be processed for both high-quality and lower-quality remanufactured goods, with a reasonable allocation ratio, respectively to meet the demand of high-quality market and lower-quality market with different prices.(3) There constructed two models with different pricing strategies, one will adopt a universal pricing strategy with a single recovery price, the other one will adopt a new pricing strategy considering the quality of the recycled, which will be described in detail, revenue maximization model are established. Models were solved using software matlab, and analyzed the models through numerical simulation, which showed the significance of this study.Finally, a summary of the full text is brought, and points out the inadequacy and further research directions.