Pricing decision model for new and remanufactured short-life cycle products with time-dependent demand》.pdf

Operations Research Perspectives 2 (2015) 1–12 Contents lists available at ScienceDirect Operations Research Perspectives journal homepage: /locate/orp Pricing decision model for new and remanufactured short-life cycle products with time-dependent demand Shu San Gan a,c , I. Nyoman Pujawan a,∗, Suparno a , Basuki Widodo b a Department of Industrial Engineering - Faculty of Industrial Technology, Sepuluh Nopember Institute of Technology, Surabaya 60111, Indonesia b Department of Mathematics - Faculty of Mathematics and Natural Science Sepuluh Nopember Institute of Technology, Surabaya 60111, Indonesia c Department of Mechanical Engineering - Faculty of Industrial Technology, Petra Christian University, Surabaya 60236, Indonesia a r t i c l e i n f o a b s t r a c t Article history: In this study we develop a model that optimizes the price for new and remanufactured short life-cycle Received 15 July 2014 products where demands are time-dependent and price sensitive. While there has been very few pub- Received in revised form lished works that attempt to model remanufacturing decisions for products with short life cycle, we 6 November 2014 believe that there are many situations where remanufacturing short life cycle products is rewarding eco- Accepted 19 November 2014 Available online 3 December 2014 nomically as well as environmentally. The system that we model consists of a retailer, a manufacturer, and a collector of used product from the end customers. Two different scenarios are evaluated for the system.