Research On The Remanufacture Pricing Strategies Based On Heterogeneous Consumers

In nowadays,as the population is increasing at a quick speed,the resource and environment are faced with more and more stress.So the collection management of End-of-Life products is of significant importance and attracts studies from domestic and oversea scholars.The behavior of remanufacturing will promote the saving of resource and energy so as to mitigate the stress to the environment,which is an important way to complement continuous improvement.However,the Original Equipment Manufacturer is still lack of systematic knowledge and practice experience as for remanufacturing,which makes it difficult for them to benefit from the remanufacturing.In such circumstance,when the independent remanufacturer steps into the market to collect end-of-life products and sell the remanufactured products.The OEM's profit will be cannibalized by the remanufacturer consequently.Therefore,the OEM should find ways in response to the competition from remanufacturer.In this thesis,the author builds a model including an OEM and a remanufacturer.The OEM sells new product in two periods.At the end of the first period,the remanufacturer decides whether to collect the end-of-life products to remanufacture and compete with the OEM in the second period.In the model,we assume that the consumer thinks the remanufactured products is not as good as the new one with a discount valuation.In charter 3,we try to find the condition under which the remanufacture will enter the market and analyze the properties of the equilibrium solutions.Based on the result concluded,the author introduce the OEM's participation of collection of end-of-life products at the end of first period in to model,to reduce the amount of used products that the remanufacturer can obtain.We use the back induction and Lagrange lemma to get the best solution.The result shows that the best collection price of end-of –life products and the sales price in the second period for both OEM and Remanufacturer is increasing as the cost saving of OEM increase.And the OEM can mitigate the cannibalization by participating into the collection of used-products.