Study On Pricing Strategy Of Remanufacture Closed-loop Supply Chainin Medical Devicesfrom Company G

Requirements of environmental protection and sustainable development urge enterprises to implement recycling remanufacturing. Especially for the used medical devices, containing lots of resources with environmental pollution, the great feature of components that suitable for remanufacturing also encourages enterprises to actively operate remanufacturing closed-loop supply chain. Besides, reasonable recycle channel, remanufacturing methods and pricing strategy can drive the operation efficiency of closed-loop supply chain. There for, it has become a heat study issue for closed-loop supply chain in the used-medical devices field.This paper selects one famous medical equipment company, company G, as the research background, the research focuses on medical devices remanufacturing closed-loop supply chain build problem and pricing strategy.Firstly, this paper analyzes the characteristics of medical devices by the example of products from Company G. Combining with the characteristics of medical devices life cycle and the current mode of supply chain in Company G, using the theory of supply chain and product life cycle method, construct three kinds of closed loop supply chain model: 1. Company G recycling and remanufacturing mode; 2. Retailors recycling – Company G remanufacturing mode; 3. Consider the patent protection for the third party recycling and remanufacturing mode.Secondly, based on the three models, the paper builds remanufacturing closed-loop supply chain pricing model, analyze the decision-making process within the supply chain members by the game theory method, get the optimal pricing decision and the optimal profit of supply chain in the three different kinds of models by the Function method for solving the optimal value.Finally, the paper selects two kinds of products of Company G, to analyze the model instance application with actual data. And do the sensitivity analysis for three elements: operating cost gap between Company G and retailors, utilization rate of used medical devices, and patent fee in the third party recycling model. Combining the above numerical analysis and sensitivity analysis, come up with suggestions for Company G on recycling channel improvement and pricing strategies. The study not only has practical reference value for Company G, but also has theoretical guidance meaning for medical equipment enterprises to improve medical equipment operation efficiency of closed-loop supply chain.Contents and conclusion of the paper are as bellow:1. Combined with the feature of medical devices suitable for recycling and remanufacturing, considering the products in Company G are mainly big and high-tech imaging equipment for healthcare, which have professional high barriers and patent protection, given the two aspects of theory and practical feasibility, the paper introduces the concept of product life cycle and patent protection, refines the lifecycle process of medical devices, puts forward three kinds of recycling and remanufacturing model: 1. Company G recycling and remanufacturing mode; 2. Retailors recycling – Company G remanufacturing mode; 3. Consider the patent protection for the third party recycling and remanufacturing model. The paper provides a new way of thinking for construction of medical devices closed-loop supply chain.2. Three kinds of mode difference pricing model are established. In the game decision process, Company G is the leader, retailors are followers, using the function optimization method, respectively, get the optimal pricing strategy of each mode, the maximum profit of each member of the supply chain and the system. Through model comparison, Company G according to its own cost threshold range, as a decision maker for whether itself or retailers to recycle.3. Company G actual products data, respectively for the high-end and low-end product data analysis, the paper puts forward that high-end products suitable for manufacturers to recycle and remanufacture, and low-end products suitable for third party recycling model, so that Company G can focus on core business. Based on the optimal pricing strategy and sensitivity analysis of recycling operating costs, rates that components can be recycled, the patent fees, the paper gets further Company G specific operation strategy and reasonable pricing strategy.