Effects of random yield in remanufacturing with price-sensitive supply and demand

• 成果类型: Article
• 署名作者: Bakal, Ismail Serdar; Akcali, Elif
• 署名单位: State University System of Florida; University of Florida; State University System of Florida; University of Florida
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• 发表日期: 2006
• 页码: 407-420
• 关键词: remanufacturing; pricing; random yield; value of information

摘要

In this study, we investigate the effects of recovery yield rate on pricing decisions in reverse supply chains. Motivated by the automotive parts remanufacturing industry, we consider an end-of-life product from which a particular part can be recovered and remanufactured for reuse, and the remainder of the product can be recycled for material recovery. Both the supply of end-of-life products and demand for remanufactured parts are price-sensitive. Yield of the recovery process is random and depends on the acquisition price offered for the end-of-life products. In this setting, we develop models to determine the optimal acquisition price for the end-of-life products and the selling price for remanufactured parts. We also analyze the effects of yield variation to the profitability of remanufacturing, benefits of delaying pricing decisions until after yield realization, and value of perfect yield rate information.