Investigation on Pricing Decisions of Remanufactured Products and Profit of Supply Chain

Yasutaka Kainuma

Abstract

This study investigates the closed-loop supply chain (CLSC) with respect to hybrid manufacturing/remanufacturing systems. In this study, a hybrid manufacturing/remanufacturing model is designed that encompasses the simultaneous production of new manufactured products and remanufactured products; this model is used to investigate the profitability of a hybrid manufacturing/remanufacturing system. The impact on the demand for new products (cannibalization effect) caused by selling remanufactured products is a concern among companies with respect to promoting the CLSC. The purpose of this study is to examine the effects on the profits obtained by a company. Numerical experiments are conducted to confirm the profitability of a hybrid manufacturing/remanufacturing system; the relationship between the demand for manufactured products and that for re-manufactured products is also investigated. This study proposes a pricing model for remanufactured products by considering consumers’ willingness to pay. The analytical results indicate that the cannibalization effect was suppressed by considering these, and it is clear that remanufactured products increase company profits.

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Paper Citation


in Harvard Style

Kainuma Y. (2019). Investigation on Pricing Decisions of Remanufactured Products and Profit of Supply Chain.In Proceedings of the 8th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES, ISBN 978-989-758-352-0, pages 253-257. DOI: 10.5220/0007313102530257


in Bibtex Style

@conference{icores19,
author={Yasutaka Kainuma},
title={Investigation on Pricing Decisions of Remanufactured Products and Profit of Supply Chain},
booktitle={Proceedings of the 8th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,},
year={2019},
pages={253-257},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0007313102530257},
isbn={978-989-758-352-0},
}


in EndNote Style

TY - CONF

JO - Proceedings of the 8th International Conference on Operations Research and Enterprise Systems - Volume 1: ICORES,
TI - Investigation on Pricing Decisions of Remanufactured Products and Profit of Supply Chain
SN - 978-989-758-352-0
AU - Kainuma Y.
PY - 2019
SP - 253
EP - 257
DO - 10.5220/0007313102530257