 Optimal production and pricing policy for a closed loop systemJianmai Shi, Guoqing Zhang and Jichang Sha Resources, Conservation & Recycling, 2011, vol. 55, issue 6, 639-647 Abstract: A closed loop system is investigated, in which the manufacturer has two channels to satisfy the demand: manufacturing brand-new products and remanufacturing returns into as-new products. Remanufactured products have no difference from brand-new products and can be sold in the same market at the same price. The demand is uncertain and sensitive to the selling price, while the return is also stochastic and sensitive to the acquisition price of used products. A mathematical model is developed to maximize the overall profit of the system by simultaneously determining the selling price, the production quantities for brand-new products and remanufactured products, and the acquisition price of used products. Some properties of the problem are analyzed, based on which a solution procedure is presented. Through a numerical example, the impacts of the uncertainties of both demand and return on the production plan, selling price, and the acquisition price of used products are analyzed. Keywords: Closed loop supply chain; Uncertain demand; Uncertain return; Reverse logistics (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:recore:v:55:y:2011:i:6:p:639-647 DOI: 10.1016/j.resconrec.2010.05.016 Access Statistics for this article Resources, Conservation & Recycling is currently edited by Ming Xu More articles in Resources, Conservation & Recycling from Elsevier |
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