Remanufacturing Pricing Decisions With Quality Differences Of Product Returns

With the advocacy of sustainable development,circular economy has gradually become an active economic development model in China.Remanufacturing is an advanced form of circular economy to realize the reuse of waste products.Remanufacturing that takes waste products as raw materials can save costs,and many manufacturers are beginning to pay attention to remanufacturing market.The return time,quantity and quality of waste products are so uncertain that remanufacturing closed-loop supply chain is more complex than traditional forward supply chain.In addition,consumers have different willingness to pay for remanufactured products,and the expected price of remanufactured products is no higher than new products.Based on the context of the difference in consumers' willingness to pay,this paper considers the uncertainty of recycling quality of waste products,and first describes the functions of demand,remanufacturing cost,recovery price,recovery rate and recovery cost.Then this paper constructs game models with manufacturers,retailers,consumers and manufacturers as leaders under the two situations of the recovery price changing with the recovery quality and not changing with the recovery quality,and obtains the optimal production pricing decision under decentralized and centralized decision-making in the remanufacturing closed-loop supply chain.It is found that decentralized decision-making will lead to the loss of profits of the supply chain,and a revenue sharing coordination contract is adopted to coordinate the supply chain.It is found that the manufacturers choose to remanufacture only when consumers' preference for remanufactured products increases and reaches a certain level.And regardless of the way in which the recycling price is adopted,when the consumers' willingness to pay of remanufactured products increases,the profits of each member of the supply chain(manufacturer and retailer in this paper)will increase by selling new products and remanufactured products.Under the same degree of remanufactured product preference,the profit of using different recycling prices based on the recovery quality in the supply chain will be higher than that of uniform recovery price,and the recovery rate is also relatively higher.