Effects of random yield in remanufacturing with price-sensitive supply and demand

Bakal İ. S., Akcali E.

PRODUCTION AND OPERATIONS MANAGEMENT, cilt.15, sa.3, ss.407-420, 2006 (SCI-Expanded) identifier identifier

  • Yayın Türü: Makale / Tam Makale
  • Cilt numarası: 15 Sayı: 3
  • Basım Tarihi: 2006
  • Doi Numarası: 10.1111/j.1937-5956.2006.tb00254.x
  • Dergi Adı: PRODUCTION AND OPERATIONS MANAGEMENT
  • Derginin Tarandığı İndeksler: Science Citation Index Expanded (SCI-EXPANDED), Scopus
  • Sayfa Sayıları: ss.407-420
  • Anahtar Kelimeler: remanufacturing, pricing, random yield, value of information, REVERSE-LOGISTICS, PRODUCT RECOVERY, INFORMATION, MANAGEMENT, SYSTEMS
  • Orta Doğu Teknik Üniversitesi Adresli: Evet

Özet

In this study, we investigate the effects of recovery yield rate on pricing decisions in reverse supply chains. Motivated by the automotive parts remanufacturing industry, we consider an end-of-life product from which a particular part can be recovered and remanufactured for reuse, and the remainder of the product can be recycled for material recovery. Both the supply of end-of-life products and demand for remanufactured parts are price-sensitive. Yield of the recovery process is random and depends on the acquisition price offered for the end-of-life products. In this setting, we develop models to determine the optimal acquisition price for the end-of-life products and the selling price for remanufactured parts. We also analyze the effects of yield variation to the profitability of remanufacturing, benefits of delaying pricing decisions until after yield realization, and value of perfect yield rate information.