Research on pricing strategy of closed-loop supply chain based on PIR and recovery effort

Jun Yao, Dongyan Chen and Hui Yu

European Journal of Industrial Engineering, 2025, vol. 19, issue 3, 313-339

Abstract: Waste products bring opportunities and challenges to remanufacturing. A Stackelberg game model based on PIR and recycling effort is constructed to compare and analyse the optimal pricing, product demand and system benefits of the closed-loop supply chain with or without PIR and recycling efforts. The results are as follows: compared with the without of PIR and recycling effort, manufacturers can lower the retail price of their products under PIR and recycling efforts to promote the increase of product demand and system total revenue. When the PIR level and the cost saving per unit of remanufactured product are constant, the larger the recycling amount of waste products is, the more total cost will be saved. It can be seen that recycling efforts will indirectly affect the level of PIR. When the input cost coefficient of PIR meets certain conditions, the manufacturer can obtain the income brought by PIR. [Received: 14 December 2022; Accepted: 7 November 2023]

Keywords: process innovation for remanufacturing; PIR; recycling efforts; closed-loop supply chain; Stackelberg game; pricing strategy. (search for similar items in EconPapers)
Date: 2025
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