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

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.

Automated summary

This study examines the conditions and optimization of pricing and production decisions for a trade-in program for remanufactured products under the constraint of consumer participation, while analyzing cannibalization between new and remanufactured products in both primary and replacement markets.