2.50
Hdl Handle:
http://hdl.handle.net/10547/594466
Title:
The value of dynamic pricing for cores in remanufacturing with backorders
Authors:
Xiong, Yu; Li, Gendao
Abstract:
In remanufacturing, the supply of used products and the demand for remanufactured products are usually mismatched because of the great uncertainties on both sides. In this paper, we propose a dynamic pricing (DP) policy to balance this uncertain supply and demand. Specifically, we study a remanufacturer’s problem of pricing a single class of cores with random price-dependent returns and random demand for the remanufactured products with backlogs. We model this pricing task as a continuous-time Markov decision process, which addresses both the finite and infinite horizon problems, and provide managerial insights by analysing the structural properties of the optimal policy. We then use several computational examples to illustrate the impacts of particular system parameters on pricing policy and the benefit of DP. In addition, the models are extended to account for the price adjustment costs. We show through numerical example that the nice structural properties do not exist any longer, and find when DP is better than static pricing.
Affiliation:
Chongqing Technology and Business University,; University of East Anglia,; Jilin University
Citation:
Xiong, Y., Li, G. (2012) 'The value of dynamic pricing for cores in remanufacturing with backorders' Journal of the Operational Research Society 64 (9):1314
Publisher:
Palgrave MacMillan
Journal:
Journal of the Operational Research Society
Issue Date:
10-Oct-2012
URI:
http://hdl.handle.net/10547/594466
DOI:
10.1057/jors.2012.124
Additional Links:
http://www.palgrave-journals.com/doifinder/10.1057/jors.2012.124
Type:
Article
Language:
en
ISSN:
0160-5682; 1476-9360
Appears in Collections:
Business and Information Systems Research Centre (BISC)

Full metadata record

DC FieldValue Language
dc.contributor.authorXiong, Yuen
dc.contributor.authorLi, Gendaoen
dc.date.accessioned2016-01-21T11:02:05Zen
dc.date.available2016-01-21T11:02:05Zen
dc.date.issued2012-10-10en
dc.identifier.citationXiong, Y., Li, G. (2012) 'The value of dynamic pricing for cores in remanufacturing with backorders' Journal of the Operational Research Society 64 (9):1314en
dc.identifier.issn0160-5682en
dc.identifier.issn1476-9360en
dc.identifier.doi10.1057/jors.2012.124en
dc.identifier.urihttp://hdl.handle.net/10547/594466en
dc.description.abstractIn remanufacturing, the supply of used products and the demand for remanufactured products are usually mismatched because of the great uncertainties on both sides. In this paper, we propose a dynamic pricing (DP) policy to balance this uncertain supply and demand. Specifically, we study a remanufacturer’s problem of pricing a single class of cores with random price-dependent returns and random demand for the remanufactured products with backlogs. We model this pricing task as a continuous-time Markov decision process, which addresses both the finite and infinite horizon problems, and provide managerial insights by analysing the structural properties of the optimal policy. We then use several computational examples to illustrate the impacts of particular system parameters on pricing policy and the benefit of DP. In addition, the models are extended to account for the price adjustment costs. We show through numerical example that the nice structural properties do not exist any longer, and find when DP is better than static pricing.en
dc.language.isoenen
dc.publisherPalgrave MacMillanen
dc.relation.urlhttp://www.palgrave-journals.com/doifinder/10.1057/jors.2012.124en
dc.rightsArchived with thanks to Journal of the Operational Research Societyen
dc.subjectdynamic pricingen
dc.subjectremanufacturingen
dc.subjectbackordersen
dc.titleThe value of dynamic pricing for cores in remanufacturing with backordersen
dc.typeArticleen
dc.contributor.departmentChongqing Technology and Business University,en
dc.contributor.departmentUniversity of East Anglia,en
dc.contributor.departmentJilin Universityen
dc.identifier.journalJournal of the Operational Research Societyen
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