Electronics Pricing And Recycling Decision Research On The Product Life Cycle And The Strategic Consumer

With the development of economy,the limits of natural resources,the sharp increase in waste electronic products and the change of people's consumption idea,more and more enterprises will extend production activities to the recovery and remanufacturing activities,which can not only reduce the cost of enterprise,improve enterprise image,also have the effect on saving natural resources and protecting the environment.Related literature shows that many compannies such as HP and Epson have saved 65% of the cost through remanufacturing activities.The lower price of remanufactured product will also attract many consumers to buy,and in order to avoid chaos sales of the remanufactured product and new products on the market effectively,some companies such as HP have attempted to sell new products by retailer and sell remanufactured product by manufacturer from 2015,this means remanufactured product has direct sales channel.Under such background and product life cycle,in order to achieve effective remanufacturing and maximize self-interest,manufacture should reasonablely evaluate and analyze the profitability of remanufacturing activities,coordinate and match the relations between supply of product market and demand of remanufactured product,so we study manufacturer's pricing and recycling decision.In this paper,the supply chain is made up of a manufacturer and a retailer,according to product life cycle to discribe products demand and effective recovery rate,then low price of remanufactured product and its independent sales channel affect the consumers' purchasing,and modelling profit maximization function of retailer and manufacturer as the objective function.Firstly we study the products' s demand change along the life cycle and build product demand rate function,then analyze strategic consumers' purchasing decision.According to the profit maximization principle,members decide product price and recovery rate.Retailer analyzes new product's price in four different ranges of remanufactured product price and according to four different intervals manufacturer makes a decision on price and optimal recovery rate.Lastly,we analyze optimal recovery rate with different prices and the influence of consumer preferences on pricing and profit by Matlab.Through numerical analysis,we found that the optimal recovery rate of the manufacturer varies with the different range of remanufactured product price,and the profit of manufacturer also changes slightly.Therefore,the manufacturer should make a decision on prices according to the different range of remanufactured price,and then select the optimal recovery rate.We also found that the manufacturer can through some promotional methods improve the consumer's perception of remanufactured goods,and encourage consumers to recycle.And improving recognition of remanufactured goods' independent sales can raise manufacturer's profit.What's more,sales interval of remanufactured product also affects the recovery rate,manufacturers should know whether high-end consumers transfer to buy remanufactured goods according to remanufactured products' price,so manufacturer should arrange resales time and recovery rate reasonably to maximize manufacturer's profit.