Open AccessDifferential Pricing Models on a Remanufacturing Supply Chain Considering Product Quality Upgrade under Carbon Trading Mechanism
Author(s) -
Guangqiang Wu,
Kaifu Yuan
Publication year - 2020
Publication title -
journal of physics. conference series
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.21
H-Index - 85
eISSN - 1742-6596
pISSN - 1742-6588
DOI - 10.1088/1742-6596/1624/2/022027
Subject(s) - remanufacturing , upgrade , supply chain , business , product (mathematics) , industrial organization , quality (philosophy) , environmental economics , economics , computer science , marketing , manufacturing engineering , engineering , philosophy , geometry , mathematics , epistemology , operating system
To study the influence of product quality upgrade on pricing decisions, a remanufacturing supply chain with a manufacturer and a retailer is investigated. Based on the carbon trading mechanism, differential pricing decision models for the remanufacturing supply chain without and with product quality upgrade are developed and solved by the backward induction through the mathematics and engineering calculation software maple18. Through the comparative analysis, we get the following results: (1) New product quality upgrade is beneficial to raise the sales price and expand market demand of new products and the profits of supply chain members and system, but it will increase total carbon emissions. (2) To reduce total carbon emission, the government should encourage enterprises to invest in emission reduction and guide consumers to buy remanufactured products.