Search

One of the critical issues in remanufacturing strategy is determining the selling prices for the multiple differentiated versions of the new and remanufactured products. This study deals with such pricing decisions in closed-loop supply chains where the demand is assumed to be price- and reusability-dependent function with partially substitutable between different versions of the product. In light of the unique and practical demand function, the Salop spatial model is used to formulate the demand model where the consumer preference and the substitution effect are considered. The analytical and numerical results suggest that the prices of the new and remanufactured products increase in the similarity between multiple versions of the product. This study contributes to the literature by simultaneously considering the effects of pricing and reusability, yet the prior studies are neglecting such effects. [ABSTRACT FROM AUTHOR]

Byline: Jen-Ming Chen, Ya-Hui Lin, Yan-Chun Chen This paper developed an integrated model in considering the situations of an imperfect process with imperfect maintenance and shortage, and an imperfect rework process for the determination of economic production quantity. This imperfect process has a general deterioration distribution with increasing hazard rate. Even with periodic preventive maintenance, such a production system cannot be recovered as good as new. As the process produces non-conforming items, a percentage of them are scrapped and the others are reworked. There is a percentage of the reworking items fail the repairing and become scrap items in the imperfect rework process. We use numerical analyses to simulate the effect of changes in the various parameters on the optimal solution. And look at the optimal inspection interval, inspection frequency and production quantity that maximum total profit which the advantages of rework process were explored.