Pricing strategies for managing new and remanufactured products in a closed-loop supply chain

Jen Ming Chen, Chia I. Chang

Research output: Contribution to journalArticlepeer-review

3 Scopus citations


This study deals with the pricing strategies in a closed-loop supply chain consisting of manufacturing and remanufacturing operations. The main objective behind analytic formulation is to investigate the pricing behavior over the product life-cycle under various parameter settings. The problem being studied is unique in the sense that the proposed model is under supply constraints, i.e., the remanufacturable quantity in the present period is subject to the availability of end-of-used products in the previous period. Our study reveals that the long-term pricing behavior generated by the constrained model is more responsive than that by the unconstrained (i.e., no supply restriction) model. Our analytical results also provide profound practitioners' insights to a variety of remanufactured products, including toner cartridge, tire, single-used camera, and many others. For examples, it provides guidance for price settings for the new and remanufactured products and the strategy for long-term pricing trajectory over the product life-cycle.

Original languageEnglish
Pages (from-to)5999-6009
Number of pages11
JournalInformation (Japan)
Issue number12 C
StatePublished - Dec 2012


  • Closed-loop supply chain
  • Lagrangean relaxation
  • Pricing
  • Remanufacturing


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