Optimal Pricing for Remanufacturing Closed-loop Supply Chain under Different Channel Power Structures and Product Dual Differentiation

doi:10.3969/j.issn.1007-7375.2018.06.008

Abstract

Abstract: A research is undertaken on the pricing decision-making for remanufacturing closed-loop supply chain considering different channel power structure and product double difference. Firstly, a three-stage remanufacturing closed-loop supply chain model is constructed. Secondly, for different channel power structures, optimal pricing strategies of each member enterprise are proposed by means of Stackelberg game theory, and the impact of collection rate of waste products τ and substitution coefficient δ on them are also discussed. Finally, this pricing decision-making model is applied to a real case of automobile generator. The research results show that:1) For three types of channel power structure, when manufacturer/remanufacturer or retailer is respectively a leader of remanufacturing closed-loop supply chain, his own profits and total profit of the closed-loop supply chain shall be maximized. However, when the recycler is a leader, the opposite is true. 2) With the increase of recovery rate τ and product substitution coefficient δ, optimal wholesale price and retail price for new products and remanufactured products shall also increase correspondingly, while optimal recovery price of the used products shall decrease. Meanwhile, the total profit of this closed-loop supply chain approximately exhibits a U-shape pattern. This research can provide effective support for optimal pricing decisions of member enterprises.

Key words: remanufacturing closed-loop supply chain, channel power structures, product dual differentiation, pricing decision-making

CLC Number:

C93
F274

LIU Wenjie, SHEN Ningning, ZHANG Jing, GENG Sunyue, ZHU Yige, LIU Yong. Optimal Pricing for Remanufacturing Closed-loop Supply Chain under Different Channel Power Structures and Product Dual Differentiation[J]. Industrial Engineering Journal , 2018, 21(6): 54-63.

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