Dynamic pricing models for used products in remanufacturing with lost-sales and uncertain quality

2.50
Hdl Handle:
http://hdl.handle.net/10547/594046
Title:
Dynamic pricing models for used products in remanufacturing with lost-sales and uncertain quality
Authors:
Xiong, Yu; Li, Gendao; Zhou, Yu; Fernandes, Kiran; Harrison, Richard; Xiong, Zhongkai
Abstract:
In this paper, we investigate the remanufacturing problem of pricing single-class used products (cores) in the face of random price-dependent returns and random demand. Specifically, we propose a dynamic pricing policy for the cores and then model the problem as a continuous-time Markov decision process. We first design a basic model that does not consider the quality uncertainty of cores, and then extend our model to incorporate this factor. Besides proving optimal policy uniqueness and establishing monotonicity results for the optimal policy, we also characterize the impact of system parameters on the optimal policies, which can provide simple managerial insights. Finally, we use computational experiments to assess the benefits of dynamic pricing compared to static pricing and identify the impacts of specific parameters on the relative merits of dynamic pricing policy.
Affiliation:
Chongqing Technology and Business University; Jilin University; University of East Anglia; Chongqing University; University of Durham; Queen′s University Belfast
Citation:
Xiong, Y. et al (2013) 'Dynamic pricing models for used products in remanufacturing with lost-sales and uncertain quality' International journal of production economics 147 (c) 378-688
Publisher:
Elsevier
Journal:
International journal of production economics
Issue Date:
22-Apr-2013
URI:
http://hdl.handle.net/10547/594046
DOI:
10.1016/j.ijpe.2013.04.025
Additional Links:
http://www.sciencedirect.com/science/article/pii/S0925527313001898
Type:
Article
Language:
en
ISSN:
0925-5273
Appears in Collections:
Centre for Advances in Marketing (CAM)

Full metadata record

DC FieldValue Language
dc.contributor.authorXiong, Yuen
dc.contributor.authorLi, Gendaoen
dc.contributor.authorZhou, Yuen
dc.contributor.authorFernandes, Kiranen
dc.contributor.authorHarrison, Richarden
dc.contributor.authorXiong, Zhongkaien
dc.date.accessioned2016-01-19T12:47:45Zen
dc.date.available2016-01-19T12:47:45Zen
dc.date.issued2013-04-22en
dc.identifier.citationXiong, Y. et al (2013) 'Dynamic pricing models for used products in remanufacturing with lost-sales and uncertain quality' International journal of production economics 147 (c) 378-688en
dc.identifier.issn0925-5273en
dc.identifier.doi10.1016/j.ijpe.2013.04.025en
dc.identifier.urihttp://hdl.handle.net/10547/594046en
dc.description.abstractIn this paper, we investigate the remanufacturing problem of pricing single-class used products (cores) in the face of random price-dependent returns and random demand. Specifically, we propose a dynamic pricing policy for the cores and then model the problem as a continuous-time Markov decision process. We first design a basic model that does not consider the quality uncertainty of cores, and then extend our model to incorporate this factor. Besides proving optimal policy uniqueness and establishing monotonicity results for the optimal policy, we also characterize the impact of system parameters on the optimal policies, which can provide simple managerial insights. Finally, we use computational experiments to assess the benefits of dynamic pricing compared to static pricing and identify the impacts of specific parameters on the relative merits of dynamic pricing policy.en
dc.language.isoenen
dc.publisherElsevieren
dc.relation.urlhttp://www.sciencedirect.com/science/article/pii/S0925527313001898en
dc.subjectremanufacturingen
dc.subjectdynamic pricingen
dc.subjectMarkov decision processen
dc.titleDynamic pricing models for used products in remanufacturing with lost-sales and uncertain qualityen
dc.typeArticleen
dc.contributor.departmentChongqing Technology and Business Universityen
dc.contributor.departmentJilin Universityen
dc.contributor.departmentUniversity of East Angliaen
dc.contributor.departmentChongqing Universityen
dc.contributor.departmentUniversity of Durhamen
dc.contributor.departmentQueen′s University Belfasten
dc.identifier.journalInternational journal of production economicsen
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