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Optimal Pricing in Recycling and Remanufacturing in Uncertain Environments

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  • Guangzhou Yan

    (School of Information Technology and Management, University of International Business and Economics, Beijing 100029, China)

  • Yaodong Ni

    (School of Information Technology and Management, University of International Business and Economics, Beijing 100029, China)

  • Xiangfeng Yang

    (School of Information Technology and Management, University of International Business and Economics, Beijing 100029, China)

Abstract

With the increasing awareness of environmental protection, firms pay much more attention to the recycling and remanufacturing of used products. This paper addresses the problem of the optimal pricing in recycling and remanufacturing in uncertain environments. We consider two strategies of remanufacturing products, by which a recycled product can be repaired and sold as a second-hand product or dissembled into materials for production of new products according to its quality. As the market demand for products and the quantities of recycled products, such as fashion products and mobile phones, usually lack historical data, this paper adopts uncertainty theory to depict uncertainty in establishing the pricing model. An uncertain programming model and a series of crisp equivalent models are proposed under the assumptions of particular uncertainty distribution. Finally, numerical experiments are performed to show how various parameters influence the results of the proposed model.

Suggested Citation

  • Guangzhou Yan & Yaodong Ni & Xiangfeng Yang, 2020. "Optimal Pricing in Recycling and Remanufacturing in Uncertain Environments," Sustainability, MDPI, vol. 12(8), pages 1-16, April.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:8:p:3199-:d:345836
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    References listed on IDEAS

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    1. Idiano D’Adamo & Paolo Rosa & Sergio Terzi, 2016. "Challenges in Waste Electrical and Electronic Equipment Management: A Profitability Assessment in Three European Countries," Sustainability, MDPI, vol. 8(7), pages 1-19, July.
    2. Geraldo Ferrer & Jayashankar M. Swaminathan, 2006. "Managing New and Remanufactured Products," Management Science, INFORMS, vol. 52(1), pages 15-26, January.
    3. R. Canan Savaskan & Luk N. Van Wassenhove, 2006. "Reverse Channel Design: The Case of Competing Retailers," Management Science, INFORMS, vol. 52(1), pages 1-14, January.
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    Cited by:

    1. Xinyue Wang & Zhimei Li & Peinan Liu, 2023. "Recycling/Production and Incentive-Penalty Strategies in Closed-Loop Supply Chains under Remanufacturing Policies," Sustainability, MDPI, vol. 15(12), pages 1-23, June.
    2. Ming-Liang Li, 2021. "Standardizing Components and Rotating Workers Using GT-Based Algorithm—A Case Study," Sustainability, MDPI, vol. 13(14), pages 1-17, July.

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