The Pricing Models Of Remanufacturing Closed-loop Supply Chain Considering RFID Technology

In recent years,remanufacturing gains more and more countries' and companies' attentions,since it can lower production costs of the companies,as well as reduce the adverse effects of waste to the environment.However,in the remanufacturing closed-loop supply chain practices,recycling used products from the market can be regarded as the source of remanufacturing.It is a critical activity in remanufacturing,and is also a difficult point.Therefore,this paper introduces Radio Frequency Identification(RFID,for short)technology into the recycling activities of waste products,for more effective operation and management.RFID technology,is a kind of non-contact automatic recognition technology by radio frequency signal in electromagnetic field.As a result,RFID can be used to track the flow of the products.So it not only provides a vitally important tool for supply chain management,but also optimizes the product remanufacturing process.In order to further discuss the effect of RFID on the remanufacturing closed loop supply chain,in the two case of assuming RFID can increase the recovery rate of waste products and RFID can decrease the recovery cost of waste products,this paper considered a closed loop supply chain with a manufacturer and a retailer and created both centralized and decentralized remanufacturing closed loop supply chain models,in order to determine the optimal pricing strategy and RFID technical level.In the case of assuming RFID can increase the recovery rate of waste products,we first analyzed the effect of using or not using RFID,and then established the remanufacturing closed-loop supply chain models to decide the level of RFID technology.After getting the optimal strategy,we had an sensitivity analysis for scaling parameter of additional increased recovery rate with RFID and cost savings.In the case of assuming RFID can decrease the recovery cost of waste products,after getting the optimal strategy,sensitivity analyses were conducted to analyze the impacts of scaling parameter for additional saving recovery cost with RFID,the cost of RFID tags,and scaling parameter for cost relevant to RFID technology level on the profits,retail prices,wholesale prices and RFID technology levels.