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Optimal Pricing Problem of a Closed-Loop Supply Chain with Remanufacturing

Reverse logistics is an important research area of particular interest to the academic community in recent years due to the impact of economics and environmental statutes. Reverse logistics deals with the processes associated with the reverse stream from owner to re-users. It encompasses all of the logistical activities from products no longer required by users to render those products usable in a market. Remanufacturing is one of the reverse logistical processes that could save substantial production costs. This study investigated a hybrid system involving manufacturing and remanufacturing processes. A constant demand can be satisfied by differentiated brand-new and remanufactured products. The used products are returned and remanufactured. We developed a mathematic model to analyze the economic decisions in pricing brand-new and remanufactured products.