This paper studies joint pricing and remanufacturing strategy of a firm that decides to offer both new and remanufactured versions of its product in the market. In making this decision, the firm balances the additional revenue from selling remanufactured products, the demand cannibalization of new product sales, and the cost of remanufacturing. We present the model of the firm’s decisions and c...

Motivated by the remanufacturing systems at Daimler AG and other automobile, aerospace heavy machinery parts dealers/manufacturers, we develop a hybrid manufacturing/remanufacturing system with controlled two-way substitution between new remanufactured products. We Markov decision processes for management on product-level as well component-level. show that optimal policy has switching-curve str...

In this paper, a production inventory model is developed for the business enterprise which consists of three wings. The first wing is for manufacturing new items, the second wing is for collecting the returned items, while third wing is for remanufacturing the returned item. In this model we consider the fact that the storage item is deteriorated during storage periods and salvage value is inco...

Firms engaged in remanufacturing activities generally adopt more than one recycling channel to collect more used products and gain more profits. This paper explores the optimal strategies for a retailer-dominated closed-loop supply chain (CLSC) with a triple recycling channel in the construction machinery remanufacturing context. In this special system, the retailer is the leader and authorized...

This paper considers remanufactured products entering new markets without competing with prototype products, which we call non-competitive remanufacturing(NCR). Changes in the functionality of urge manufacturer to adopt a market diversification strategy, leads face barriers when industry. In this paper, study manufacturer's production and remanufacturing decisions NCR environment consider two s...

In the area of reverse logistics, remanufacturing has been proven to be a valuable option for product recovery. In many industries, each step of the products’ recovery is carried out in lot sizes which leads to the assumption that for each of the different recovery steps some kind of fixed costs prevail. Furthermore, holding costs can be observed for all recovery states of the returned product....

Despite documented benefits of remanufacturing, many manufacturers have yet to embrace the idea of tapping into remanufactured-goods markets. In this paper, we explore this dichotomy and analyze the effect of remanufacturable product design on market segmentation and product and trade-in prices by studying a two-stage profit-maximization problem in which a price-setting manufacturer can choose ...

Manufacturers often face a choice of whether to recover the value in their end-of-life products through remanufacturing. In many cases, firms choose not to remanufacture, as they are (rightly) concerned that the remanufactured product will cannibalize sales of the higher-margin new product. However, such a strategy may backfire for manufacturers operating in industries where their end-of-life p...

W e consider an original equipment manufacturer (OEM) who faces competition from an independent remanufacturer (IR). The OEM decides the quality of the new product, which also determines the quality of the competing remanufactured product. The OEM and the IR then competitively determine their production quantities. We explicitly characterize how the OEM competes with the IR in equilibrium. Spec...