Managing new and differentiated remanufactured products

By Geraldo Ferrer, Jayashankar M. Swaminathan. European Journal of Operational Research, 2010

458 citations recorded by the source corpus.

We study a firm that makes new products in the first period and uses returned cores to make remanufactured products (along with new products) in future periods. The remanufactured product is differentiated from the new product, so the firm needs to choose differentiated prices. We analyze the monopoly environment in two-period, multi-period (three, four and five) and infinite planning horizons, and characterize the optimal remanufacturing and pricing strategy for the firm. In the process, we identify remanufacturing savings thresholds that determine the production and pricing strategy for the firm. Among other results, we find--counter to intuition--that in a finite-horizon, multi-period setting, the optimal policy is not necessarily monotone in remanufacturing savings.

Subfields: Management Information Systems, Marketing, Strategy and Management

View Paper: https://www.semanticscholar.org/paper/32d12a4ce1fcb4f272e229cdd2e03eeccea551e9

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Citations in the corpus

Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future (2015, unknown): “…Persona, Sgarbossa, & Zanin, 2011; Farzipoor Saen, 2009; Ferguson, Guide, Koca, & Souza, 2009; Fernandes, Gomes-Salema, & Barbosa-Povoa, 2010; Ferrer & Swaminathan, 2010; Francas & Minner, 2009; Galbreth & Blackburn, 2010; Gamberini, Gebennini, Manzini, & Ziveri, 2010; Ge & Huang, 2007; Ge,…”
Carbon tax or cap-and-trade: Which is more viable for Chinese remanufacturing industry? (2020, background): “x Ferrer, G. (2010). Managing New and Differentiated Remanufactured Products. European Journal of Operational Research, 203(2), 370-379. doi:https://doi.org/10.1016/j.ejor.2009.08.007 Ferrer, G., & Swaminathan, J. M. (2006). Managing New and Remanufactured Products. Management Science, 52(1), 15-26.”
Distribution Channel Choice and Divisional Conflict in Remanufacturing Operations (2020, background): “…critical issue in managing manufacturing and remanufacturing operations because it has been proven to be an effective strategy to control demand (Ferrer and Swaminathan 2006, 2010), segment the consumer market (Atasu et al. 2008, Debo et al. 2005), and limit competition (Ferguson and Tok-tay…”
Impact of Take‐Back Regulation on the Remanufacturing Industry (2017, background): “However, every item collected may not be suitable for remanufacturing due to wear and tear (Ferrer and Swaminathan 2010, Karaer and Lee 2007, Subramanian et al. 2013), thus only a fraction h 2 [0, 1] of the collected volume is viable for reman-ufacturing regardless of collector.”
Competitive Quality Choice and Remanufacturing (2014, background): “…assumptions regarding who produces the remanufactured product: a monop-olist OEM who also sells the new product (e.g., Esen-duran et al. 2010, Ferrer and Swaminathan 2010), an IR competing with an OEM (e.g., Esenduran et al. 2012, Ferrer and Swaminathan 2006, Majumder and Groenevelt 2001),…”