IDEAS home Printed from https://ideas.repec.org/a/eee/ejores/v190y2008i3p756-767.html
   My bibliography  Save this article

An analytical model for reverse automotive production planning and pricing

Author

Listed:
  • Qu, Xiuli
  • Williams, Julie Ann Stuart

Abstract

Automotive shredders need a reverse production planning strategy that includes determining at what price to purchase vehicle hulks from different sources. In this paper, we formulate the automotive reverse production planning and pricing problem in a nonlinear programming model, develop an approximate supply function for hulks when adjacent shredders price independently, and compare two hulk pricing strategies in three trends for ferrous metal and hulk prices: constant, increasing and decreasing. The case study results indicate that adjusting purchase price based on hulk composition in coordination with planning for purchasing, storing and processing can increase net revenue by 7-15%.

Suggested Citation

  • Qu, Xiuli & Williams, Julie Ann Stuart, 2008. "An analytical model for reverse automotive production planning and pricing," European Journal of Operational Research, Elsevier, vol. 190(3), pages 756-767, November.
  • Handle: RePEc:eee:ejores:v:190:y:2008:i:3:p:756-767
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0377-2217(07)00633-9
    Download Restriction: Full text for ScienceDirect subscribers only
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Jacqueline A. Isaacs & Surendra M. Gupta, 1997. "Economic Consequences of Increasing Polymer Content for the U.S. Automobile Recycling Infrastructure," Journal of Industrial Ecology, Yale University, vol. 1(4), pages 19-33, October.
    2. Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), 2002. "Trade, Networks and Hierarchies," Advances in Spatial Science, Springer, number 978-3-662-04786-6.
    3. Nagurney, Anna & Toyasaki, Fuminori, 2005. "Reverse supply chain management and electronic waste recycling: a multitiered network equilibrium framework for e-cycling," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 41(1), pages 1-28, January.
    4. Williams, J.A.S. & Wongweragiat, S. & Qu, X. & McGlinch, J.B. & Bonawi-tan, W. & Choi, J.K. & Schiff, J., 2007. "An automotive bulk recycling planning model," European Journal of Operational Research, Elsevier, vol. 177(2), pages 969-981, March.
    5. Frank Giarratani & Gene Gruver & Craig Richmond, 2002. "The US Regional Ferrous Scrap Model," Advances in Spatial Science, in: Geoffrey J. D. Hewings & Michael Sonis & David Boyce (ed.), Trade, Networks and Hierarchies, chapter 9, pages 159-175, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ferrer, Geraldo & Swaminathan, Jayashankar M., 2010. "Managing new and differentiated remanufactured products," European Journal of Operational Research, Elsevier, vol. 203(2), pages 370-379, June.
    2. T. V. Krishna Mohan & R. K. Amit, 2020. "Dismantlers’ dilemma in end-of-life vehicle recycling markets: a system dynamics model," Annals of Operations Research, Springer, vol. 290(1), pages 591-619, July.
    3. Simic, Vladimir & Dimitrijevic, Branka, 2013. "Risk explicit interval linear programming model for long-term planning of vehicle recycling in the EU legislative context under uncertainty," Resources, Conservation & Recycling, Elsevier, vol. 73(C), pages 197-210.
    4. Tian, Xiaoyu & Zhang, Zhi-Hai, 2019. "Capacitated disassembly scheduling and pricing of returned products with price-dependent yield," Omega, Elsevier, vol. 84(C), pages 160-174.
    5. Jisoo Oh & Bongju Jeong, 2014. "Profit Analysis and Supply Chain Planning Model for Closed-Loop Supply Chain in Fashion Industry," Sustainability, MDPI, vol. 6(12), pages 1-30, December.
    6. Shi, Jianmai & Zhang, Guoqing & Sha, Jichang, 2011. "Optimal production and pricing policy for a closed loop system," Resources, Conservation & Recycling, Elsevier, vol. 55(6), pages 639-647.
    7. Simic, Vladimir & Dimitrijevic, Branka, 2012. "Production planning for vehicle recycling factories in the EU legislative and global business environments," Resources, Conservation & Recycling, Elsevier, vol. 60(C), pages 78-88.
    8. Suzanne, Elodie & Absi, Nabil & Borodin, Valeria, 2020. "Towards circular economy in production planning: Challenges and opportunities," European Journal of Operational Research, Elsevier, vol. 287(1), pages 168-190.
    9. Seyed Ahmad Yazdian & Kamran Shahanaghi & Ahmad Makui, 2016. "Joint optimisation of price, warranty and recovery planning in remanufacturing of used products under linear and non-linear demand, return and cost functions," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(5), pages 1155-1175, April.
    10. Dinler, Esra & Güngör, Zülal, 2017. "Planning decisions for recycling products containing hazardous and explosive substances: A fuzzy multi-objective model," Resources, Conservation & Recycling, Elsevier, vol. 117(PB), pages 93-101.
    11. Simic, Vladimir, 2015. "A two-stage interval-stochastic programming model for planning end-of-life vehicles allocation under uncertainty," Resources, Conservation & Recycling, Elsevier, vol. 98(C), pages 19-29.
    12. Lu, Liang & Qi, Xiangtong & Liu, Zhixin, 2014. "On the cooperation of recycling operations," European Journal of Operational Research, Elsevier, vol. 233(2), pages 349-358.
    13. Wu, Cheng-Han, 2013. "OEM product design in a price competition with remanufactured product," Omega, Elsevier, vol. 41(2), pages 287-298.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Simic, Vladimir & Dimitrijevic, Branka, 2012. "Production planning for vehicle recycling factories in the EU legislative and global business environments," Resources, Conservation & Recycling, Elsevier, vol. 60(C), pages 78-88.
    2. Caiado, Nathália & Guarnieri, Patricia & Xavier, Lúcia Helena & de Lorena Diniz Chaves, Gisele, 2017. "A characterization of the Brazilian market of reverse logistic credits (RLC) and an analogy with the existing carbon credit market," Resources, Conservation & Recycling, Elsevier, vol. 118(C), pages 47-59.
    3. Luyi Gui & Atalay Atasu & Özlem Ergun & L. Beril Toktay, 2016. "Efficient Implementation of Collective Extended Producer Responsibility Legislation," Management Science, INFORMS, vol. 62(4), pages 1098-1123, April.
    4. Yang, Yuxiang & Goodarzi, Shadi & Jabbarzadeh, Armin & Fahimnia, Behnam, 2022. "In-house production and outsourcing under different emissions reduction regulations: An equilibrium decision model for global supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 157(C).
    5. Chen, Yenming J. & Sheu, Jiuh-Biing & Lirn, Taih-Cherng, 2012. "Fault tolerance modeling for an e-waste recycling supply chain," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 48(5), pages 897-906.
    6. Subhani, Muhammad Imtiaz & Hasan, Syed Akif & Osman, Ms. Amber, 2012. "Impact of Organization Culture on Promoting Green Supply Chain," MPRA Paper 45090, University Library of Munich, Germany.
    7. Geoffrey J.D. Hewings & Suahasil Nazara & Chokri Dridi, 2004. "Channels of synthesis forty years on: integrated analysis of spatial economic systems," Journal of Geographical Systems, Springer, vol. 6(1), pages 7-25, April.
    8. Euijune Kim & Geoffrey J.D. Hewings & Hidayat Amir, 2015. "Project Evaluation of Transportation Projects: an Application of Financial Computable General Equilibrium Model," ERSA conference papers ersa15p453, European Regional Science Association.
    9. Letmathe, Peter & Wagner, Sandra, 2018. "“Messy” marginal costs: Internal pricing of environmental aspects on the firm level," International Journal of Production Economics, Elsevier, vol. 201(C), pages 41-52.
    10. Yan Zhou & Xue-Qi Liu & Kar-Hung Wong, 2021. "Remanufacturing Policies Options for a Closed-Loop Supply Chain Network," Sustainability, MDPI, vol. 13(12), pages 1-26, June.
    11. Ziliang Deng & Rod Falvey & Adam Blake, 2013. "Quantifying Foreign Direct Investment Productivity Spillovers in China: A Computable General Equilibrium Model," Asian Economic Journal, East Asian Economic Association, vol. 27(4), pages 369-389, December.
    12. Andrea BONFIGLIO, 2005. "Sector Potentiality and Sources of Growth. An Analysis of Structural Changes in Italy in the Nineties," Working Papers 237, Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali.
    13. Hsu, Chaug-Ing & Li, Hui-Chieh, 2009. "An integrated plant capacity and production planning model for high-tech manufacturing firms with economies of scale," International Journal of Production Economics, Elsevier, vol. 118(2), pages 486-500, April.
    14. García Muñiz, Ana Salomé, 2013. "Input–output research in structural equivalence: Extracting paths and similarities," Economic Modelling, Elsevier, vol. 31(C), pages 796-803.
    15. Ning Chang & Michael L. Lahr, 2016. "Changes in China’s production-source CO 2 emissions: insights from structural decomposition analysis and linkage analysis," Economic Systems Research, Taylor & Francis Journals, vol. 28(2), pages 224-242, June.
    16. Juan-Pierré BRUWER & André VAN DEN BERG, 2017. "The conduciveness of the South African economic environment and Small, Medium and Micro Enterprise sustainability: A literature review," Expert Journal of Business and Management, Sprint Investify, vol. 5(1), pages 1-12.
    17. Giuseppe Francesco Gori & Renato Paniccià, 2015. "A structural multisectoral model with new economic geography linkages for Tuscany," Papers in Regional Science, Wiley Blackwell, vol. 94, pages 175-196, November.
    18. Visvanathan NAICKER & Suzaan LE ROUX & Juan BRUWER & Juan-Pierré BRUWER, 2017. "Knowledge Sharing as a Value-Adding Initiative for South African SMME Sustainability: A Literature Review," Expert Journal of Business and Management, Sprint Investify, vol. 5(2), pages 51-60.
    19. Haddad, Eduardo & Porsse, Alexandre & Pereda, Paula, 2012. "Territorial Economic Impacts of Climate Anomalies in Brazil," TD NEREUS 8-2012, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    20. Hammond, David & Beullens, Patrick, 2007. "Closed-loop supply chain network equilibrium under legislation," European Journal of Operational Research, Elsevier, vol. 183(2), pages 895-908, December.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ejores:v:190:y:2008:i:3:p:756-767. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eor .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.