Pricing and remanufacturing decisions in two competing supply chains

Jie Wei and Jing Zhao

International Journal of Production Research, 2015, vol. 53, issue 1, 258-278

Abstract: This paper considers the pricing and remanufacturing decisions in a duopoly market with two competing supply chains, which compete at both manufacturer and retailer levels. There are one manufacturer and one retailer in each supply chain, one manufacturer produces the new product directly from raw material, while the other manufacturer has incorporated a remanufacturing process for used product into the original production system. Based on different industry organisation structures and the chain members’ competing forms, five game decision models are established to explore the chain members’ optimal strategies on price and/or remanufacturing, and the corresponding equilibrium solutions are obtained. Finally, we carry out the sensitivity analysis through numerical studies of some key parameters for examining their influences on the pricing decisions and chain members’ maximum profits. On the basis of comparison and analysis, some managerial insights are derived.

Date: 2015
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Citations: View citations in EconPapers (19)

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DOI: 10.1080/00207543.2014.951088

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