Research On Pricing Decision Of ELVs Recycling Products In Different Market Environments

By the end of 2019,the number of civil vehicles in China has reached 261.5 million,ranking the second in the world.In the next few years,China will enter the peak period of car scrapping.If the end-of-life vehicles(ELVs)are recycled,it will bring huge environmental,economic and social benefits.The recycling of ELVs in this thesis refers to the remanufacturing and reuse of ELVs,and the recycling products refers to remanufactured products and reused products.Considering that there are three kinds of products in the market: new products,remanufactured products and reused products,and consumers have different willingness to pay(WTP)for new products,remanufactured products and reused products,and there is quality differentiation between new products and reused products.The pricing decision of ELVs recycling products in different environments are studied respectively.Among them,in monopoly environment,assuming that there is only one monopolized OEM in the market,we discuss the pricing decisions under the two situations of OEM only producing new products and participating in the production of recycling products.In competition environment,assuming that there is only one monopolized OEM and one monopolized IR in the market,we study the pricing models under three circumstances: OEM does not take the blocking strategy,OEM takes the blocking strategy of participating in the production of recycling products,and OEM takes the blocking strategy of authorizing IR to produce remanufactured products.In cooperation environment,assuming that there is a supply chain composed of a single OEM and a single IR,we analyze and compare the pricing decision models under decentralized decision and centralized decision.The analysis of these models shows that the price of new products has nothing to do with the degree of reuse of reused products.The price of remanufactured products is an increasing function of the degree of acceptance of remanufactured products,which has nothing to do with the degree of reuse of reused products.The price of remanufactured products is an increasing function of the degree of acceptance of remanufactured products and the degree of reuse of reused products.The sales volume of new products and reused products is the decreasing function of the degree of acceptance of remanufactured products.The sales volume of remanufactured products,the total sales volume of recycling products and the total sales volume of three products is the increasing function of the degree of acceptance of remanufactured products.The sales volume of remanufactured products is the decreasing function of the degree of reuse of reused products.The sales volume of reused products,the total sales volume of recycling products and the total sales volume of three products is the increasing function of the degree of reuse of reused products.At the same time,in monopoly environment,OEM’s participation in the production of recycling products will improve the income of OEM and the total social income.However,the optimal sales volume of new products,remanufactured products and reused products,the optimal profit of OEM and the total social income have nothing to do with the proportion of government subsidized consumers and the government can promote the development of remanufacturing industry of ELVs and recycling of ELVs by increasing the amount of government subsidies,so as to improve the profits of enterprises and the total social income.In competition environment,two kinds of blocking strategies can alleviate the external competition,and OEM should choose blocking strategies according to the acceptance of remanufactured products and the degree of reuse of reused products.In cooperation environment,OEM’s profit under decentralized decision is higher than that under competition,while IR’s situation is the opposite.Moreover,the overall profit of the supply chain in decentralized decision-making is lower than that in centralized decision-making,so a reasonable and effective coordination mechanism is designed based on centralized decision-making,so that the overall profit of coordinated supply chain can achieve the effect of centralized decision-making,and the profit of OEM and IR are greater than that in competition..