Centralization vs. advance quality information in re- manufacturing

Bakal İ. S., Ünal M., Bayındır Z. P.

23rd EUROPEAN CONFERENCE E ON OPERATIONAL RESEARCH, Bonn, Germany, 5 - 09 July 2009, pp.28

  • Publication Type: Conference Paper / Summary Text
  • City: Bonn
  • Country: Germany
  • Page Numbers: pp.28
  • Middle East Technical University Affiliated: Yes


We investigate a reverse supply chain consisting of a collector and a remanufacturer in a single-period context. Both the quantity of re- turns and demand for remanufactured products are price-sensitive. The quality of returns is uncertain and revealed by an inspection process. We assume two quality classes, and the cost of remanu- facturing depends on the quality class. In this setting, we develop models to determine the optimal acquisition fee for the returns and the selling price for remanufactured products, and we explore the effects of decentralization and advance quality information.