Optimal Quality-Based Recycling and Reselling Prices of Returned SEPs in IoT Environment
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In IoT (Internet of Things) environment, OEM (Original Equipment Manufacturer) can perceive and monitor the quality status of SEPs (sensor-embedded products) in a real-time way. In the paper, considering the characteristic of SEPs, an algorithm based on GA (genetic algorithm) is proposed for OEM to determine recycling and reselling prices of returned SEPs. A benchmark example is utilized to verify the effectiveness of the proposed algorithm. We find that OEM’s profit is positively related to the maximum amount of available SEPs and the demand on returned SEPs in the secondary market; however, they are negatively related to customers’ expected rewards. For the purpose of protecting environment, governments should subsidize OEM with insufficient production capacity but are regulated to handle their end-of-use SEPs.
KeywordsInternet of Things Quality Pricing SEPs