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Optimal pricing strategy of a hybrid trade old for new and remanufactured products supply chain

  • Xiaoxi Zhu
  • Miaomiao Wang
Original Paper
  • 91 Downloads

Abstract

Remanufacturing has been widely recognized in practice. However, the low acceptance of remanufactured products deeply hinders the performance of remanufacturing. Recently, trade-in programs are growing in popularity for selling remanufactured products to promote consumptions. In this paper, under the constraint of consumer participation, we investigate the conditions under which a trade-in program for remanufactured products should be adopted and how to optimize the pricing and production decisions. Cannibalization between new and remanufactured products has been analyzed for both primary and replacement markets.

Keywords

Remanufacturing Optimal pricing Trade-in Market segmentation 

Notes

Acknowledgements

We thank professor Minglun Ren for his assistance on improving the language. The work was supported by the Ministry of education of Humanities and Social Science Project of China [15YJC630125], the Fundamental Research Funds for the Central Universities [JZ2017HGBZ0926], Philosophy and Social Science Project of Anhui Province [AHSKY2016 D21, AHSKY2016D25], the Natural Science Foundation of Anhui Province [18080 85QG231, 1808085QG222], the National Natural Science Foundation of China [61473141,71531008], Key Project of Youth Foundation of Anhui Agriculture University [2016ZR017], Talent Project of Introduction and Stabilization of Anhui Agriculture University [yj2017-23].

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Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.School of ManagementHefei University of TechnologyHefeiPeople’s Republic of China
  2. 2.College of Economics and ManagementAnhui Agricultural UniversityHefeiPeople’s Republic of China

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