TY - GEN
T1 - Green profit maximization through joint pricing and production planning of new and remanufactured products
AU - Kwak, Minjung
AU - Koritz, Katherine
AU - Kim, Harrison Hyung Min
N1 - Copyright:
Copyright 2014 Elsevier B.V., All rights reserved.
PY - 2013
Y1 - 2013
N2 - To achieve "green profit" in their business, manufacturers who produce both new and remanufactured products must optimize their pricing and production decisions simultaneously. They must determine the buy-back price and take-back quantity of end-of-life products as well as the selling prices and production quantities of new and remanufactured products. With an aim to assist in optimal pricing and production planning, this paper presents a mixed-integer programming model that optimizes the three prices (of buyback, new and remanufactured products) and the corresponding production plan simultaneously. The model considers the two conflicting objectives of maximizing economic profitability and maximizing environmental impact saving. The model helps address potential barriers to remanufacturing, which include limited economic, and/or environmental sustainability of remanufacturing, imbalance between the supply of end-of-life products and the market demand for remanufactured products, and cannibalization of the sales of new products. The developed model is illustrated with an example of engine water pump.
AB - To achieve "green profit" in their business, manufacturers who produce both new and remanufactured products must optimize their pricing and production decisions simultaneously. They must determine the buy-back price and take-back quantity of end-of-life products as well as the selling prices and production quantities of new and remanufactured products. With an aim to assist in optimal pricing and production planning, this paper presents a mixed-integer programming model that optimizes the three prices (of buyback, new and remanufactured products) and the corresponding production plan simultaneously. The model considers the two conflicting objectives of maximizing economic profitability and maximizing environmental impact saving. The model helps address potential barriers to remanufacturing, which include limited economic, and/or environmental sustainability of remanufacturing, imbalance between the supply of end-of-life products and the market demand for remanufactured products, and cannibalization of the sales of new products. The developed model is illustrated with an example of engine water pump.
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U2 - 10.1115/DETC2013-12162
DO - 10.1115/DETC2013-12162
M3 - Conference contribution
AN - SCOPUS:84897012753
SN - 9780791855898
T3 - Proceedings of the ASME Design Engineering Technical Conference
BT - 39th Design Automation Conference
PB - American Society of Mechanical Engineers
T2 - ASME 2013 International Design Engineering Technical Conferences and Computers and Information in Engineering Conference, IDETC/CIE 2013
Y2 - 4 August 2013 through 7 August 2013
ER -