Revenue management in remanufacturing under competition, cannibalization, and customer behavior

Onderzoeksoutput: Bijdrage aan congresAbstractAcademic

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Samenvatting

Although remanufacturing has good economic potential, many firms
are worried about the eects of cannibalization and competition. Cannibalization
leads to issues in the optimal pricing decision since it
aects the new product market. At the same time, the presence of
another firm selling the same primary product as well as its remanufactured
version is also an issue for firms, since the firms face external
competition and also strive to evolve a reasonable remanufacturing
strategy where the collection of used product is also a factor. Further,
customer behavior towards new and remanufactured products determine
the degree of cannibalization and thus aect the optimal prices.
Two kinds of customer behavior are observed - an inverted-U-shaped
function where customers get suspicious when the price is too low, and
the other is a linear function which behaves according to willingness to
pay. In this study, we develop models to help firms make the strategic
decisions concerning remanufacturing policies under cannibalization
and dierent customer behavior in a competitive setting. We consider
duopoly environments with two firms in direct competition selling their
new and remanufactured products in the same market. We identify the
equilibrium decisions and profits for both the firms. We provide sensitivity
analyses and derive general managerial insights.
Originele taal-2Engels
Pagina's388
Aantal pagina's1
StatusGepubliceerd - 8 jul 2018
EvenementEURO2018: 29th European Conference on Operational Research - UV – Universitat de València, UPV – Universitat Politècnica de València , Valencia, Spanje
Duur: 8 jul 201811 jul 2018
Congresnummer: 29
http://euro2018valencia.com/

Congres

CongresEURO2018
LandSpanje
StadValencia
Periode8/07/1811/07/18
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