Integrated pricing and production planning for remanufacturing

Abstract

Appropriate pricing and production planning plays a key role in optimizing remanufacturing. Buy-back price of an end-of-life product enables to manage the quantity and quality of supply, while selling price of a remanufactured product allows to control demand. Production planning makes it possible to match the supply and demand at the minimum cost. This paper addresses the issue that such pricing and production planning should be optimized in an integrated manner to maximize the profit from remanufacturing but they have been dealt with separately. A model for integrated pricing and production planning is proposed which maximizes the profit from remanufacturing by matching the supply and demand at the part level. The model is applied to an example of smartphone remanufacturing for illustration. © 2016 ICIC International.