Please use this identifier to cite or link to this item: https://ir.iimcal.ac.in:8443/jspui/handle/123456789/1323
Title: Optimal pricing and core acquisition strategy for a hybrid manufacturing/remanufacturing system
Authors: Mitra, Subrata
Keywords: Core acquisition
Hybrid system
One-way substitution
Pricing
Remanufacturing
Issue Date: 2016
Publisher: SCOPUS
International Journal of Production Research
Taylor and Francis Ltd.
Series/Report no.: 54(5)
Abstract: Remanufacturing is one of the product recovery options where the quality of used products (cores) is upgraded to as-good-as-new conditions. In this article, we consider a monopolist firm selling new and remanufactured products to quality-conscious primary customers and price-sensitive secondary customers, respectively, with one-way substitution, i.e. some primary customers may substitute new products by remanufactured products while secondary customers can never afford to buy new products. We develop economic models under two scenarios - when the supply of cores is unconstrained and when manufacturers have to procure cores at an acquisition price. The major observations of the article are as follows. A firm is better off when there is no constraint on the supply of cores. Even when cores have to be acquired at an acquisition price, the profitability is higher than that when the firm does not engage in remanufacturing activities. When a larger number of primary customers replace new products with remanufactured products, there is partial cannibalization of new product sales; however, the combined market share and profitability of the firm increase. When core supply is constrained and customers are less sensitive to core prices, the limited supply of cores may render remanufacturing an infeasible option for the firm. Therefore, firms should not only generate awareness among primary customers to buy remanufactured products, but also step up efforts to ensure a steady supply of cores. We conclude the article with managerial implications and directions for future research. � 2015 Taylor & Francis.
Description: Mitra, Subrata, Operations Management, Indian Institute of Management Calcutta, Kolkata, India
ISSN/ISBN - 00207543
pp.1285-1302
DOI - 10.1080/00207543.2015.1067376
URI: https://www.scopus.com/inward/record.uri?eid=2-s2.0-84938631972&doi=10.1080%2f00207543.2015.1067376&partnerID=40&md5=bb0133d74f6e718468bbddc810ff33fd
https://ir.iimcal.ac.in:8443/jspui/handle/123456789/1323
Appears in Collections:Operations Management

Files in This Item:
There are no files associated with this item.


Items in DSpace are protected by copyright, with all rights reserved, unless otherwise indicated.