Pricing and production planning for reverse supply chain: a review

Recently, much attention has been devoted to research in reverse supply chain (RSC) and remanufacturing. This has been motivated both by academic interest and by the significant impact that the RSC activities, including remanufacturing, have on a nation's economy. In 1996, remanufacturing alone...

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Bibliographic Details
Published in:International journal of production research 2013-11, Vol.51 (23-24), p.6972-6989
Main Authors: Steeneck, Daniel W., Sarin, Subhash C.
Format: Article
Language:English
Subjects:
market segmentation
mathematical modeling
Pricing policies
Production planning
Remanufacturing
revenue management
Reverse engineering
reverse supply chain
Studies
Supply chain management
Supply chains
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Summary:Recently, much attention has been devoted to research in reverse supply chain (RSC) and remanufacturing. This has been motivated both by academic interest and by the significant impact that the RSC activities, including remanufacturing, have on a nation's economy. In 1996, remanufacturing alone accounted for 0.4% of the US economy, as a $53 billion industry. In this paper, we provide background information on RSC and a brief exposure on the breadth of RSC literature, focused on remanufacturing. Two research streams, namely, pricing of new and remanufactured products and production planning and control in the presence of remanufacturing, are reviewed in some depth. Our review has unveiled a significant gap in the literature, namely that the pricing models till date do not typically consider the per-unit cost of remanufacturing to be a function of the number of cores acquired. This is an important consideration since the pricing of remanufactured products is dependent on the production cost. As the optimal production quantity depends on product demand, which, in turn, relies on the price of a remanufactured product, it is important to integrate production planning and pricing models for RSC.
ISSN:0020-7543
1366-588X
DOI:10.1080/00207543.2013.836780