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Managing Pricing of Closed-Loop Supply Chain Under Patent Protection

Author

Listed:
  • Cao Xiaogang
  • Hua Leqi
  • Wu Yan

    (School of Management, Wuhan Textile University, Wuhan430073, China)

  • Wen Hui

    (School of Science, Hubei University of Technology, Wuhan430068, China)

Abstract

This paper studies the closed-loop supply chain decision problem in which the original manufacturer allows the third-party remanufacturer to remanufacture under patent protection. In the two cycle mode, the authors discuss the pricing decision problem of the original manufacturer, the retailer, and the third-party remanufacturer in centralized and decentralized decision-making cases. The authors obtain the optimal sale price and wholesale price of new products and remanufactured products in two cases, and the optimal recycling rate of used products in centralized decision-making case. Finally, the authors carry out the corresponding numerical simulation of the pricing decision.

Suggested Citation

  • Cao Xiaogang & Hua Leqi & Wu Yan & Wen Hui, 2015. "Managing Pricing of Closed-Loop Supply Chain Under Patent Protection," Journal of Systems Science and Information, De Gruyter, vol. 3(1), pages 37-47, February.
    • Handle: RePEc:bpj:jossai:v:3:y:2015:i:1:p:37-47:n:4
    DOI: 10.1515/JSSI-2015-0037
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    References listed on IDEAS

    as
    1. Atalay Atasu & Miklos Sarvary & Luk N. Van Wassenhove, 2008. "Remanufacturing as a Marketing Strategy," Management Science, INFORMS, vol. 54(10), pages 1731-1746, October.
    2. Mark Ferguson & V. Daniel R. Guide , Jr. & Gilvan C. Souza, 2006. "Supply Chain Coordination for False Failure Returns," Manufacturing & Service Operations Management, INFORMS, vol. 8(4), pages 376-393, August.
    3. Nektarios Oraiopoulos & Mark E. Ferguson & L. Beril Toktay, 2012. "Relicensing as a Secondary Market Strategy," Management Science, INFORMS, vol. 58(5), pages 1022-1037, May.
    4. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
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