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Title | Optimization Modelling On Pricing Decision For Short Life Cycle Products In A Closed-Loop Supply Chain With Remanufacturing |
Edition | |
Call Number | DS/2016/01 |
ISBN/ISSN | |
Author(s) | San, Gan Shu |
Subject(s) | Remanufacturing Closed-loop supply chain short life-cycle product pricing |
Classification | 658.72 San o |
Series Title | GMD | Disertasi |
Language | Inggris |
Publisher | Jurusan Teknik Industri FTI-ITS |
Publishing Year | 2016 |
Publishing Place | Surabaya |
Collation | 25 cm |
Abstract/Notes | Rapid technology innovation coupled with increased obsolescence in function and desirability for technology-based products, has been reflected in shorter and shorter product’s life cycle. This condition leads to increased production that consume natural resources and energy. Moreover, the volume of and-of-use or end-of-life products increases and creates huge amount of wastes. Remanufacturing is one of the product recovery process which transforms used-product into “likenew” condition, hence could extend the product’s useful life. However, there are challenges in performing successful remanufacturing, and remarketing is one of them. Profitability is a significant motive for firms to decide in performing remanufacturing. Therefore, pricing decision is vital in ensuring profitable remanufacturing. This research aims to model pricing decision problems for new and remanufactured product of short life cycle product in a closed-loop supply chain. First we develop pricing decision model with differentiated new and remanufactured products prices under time-dependent and price sensitive demand. Then we consider a situation where there are uncertainties in demand of new products as well as remanufactured product, coupled with uncertainty in yield factor, which is the proportion of used product acquired that meets the quality standard for being remanufactured. The last problem is focusing on the market channel, where we consider not only the retail store but also manufacturer’s direct channel such as factory outlet dedicated for remanufactured products. The results show that (1) joint profit model performs better than independent one, (2) remanufacturing cost and speed of change in demand are significantly influence the total profit, (3) under random yield and random demand, shortage penalty and yield randomness are significantly influence pricing decisions; however, the effect of yield randomness can be mitigated by involving the whole supply chain, (4) dual-channel system can improve the total supply chain’s profit compared to the single channel approach, (5) the scaling factors that represent acceptance towards remanufactured product and preference for selling it via direct channel have significant effects to the pricing decisions and the profit of each member within the supply chain. We also provide the managerial implications to the research findings. |
Specific Detail Info | remanufacturing, closed-loop supply chain, short life-cycle product, pricing |
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Pembimbing | Prof. Dr.Ir. I. Nyoman Pujawan, M.Eng; Prof.Dr.Ir. Suparno, MSIE; Prof.Dr.Ir. Basuki Widodo, MSc. |
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