Earticle

초록

영어

Remanufactured product has the same or similar quality as a new product and used products are recovered and sold as new products. Manufactured and remanufactured products can be substitutes for each other. Customer-driven substitution is initiated by the customers and firm-driven substitution is initiated by the firm. In this study, we consider a single-period stochastic optimization model considering firm-driven substitution for the optimal decisions of price and production quantity. The most common type of substitution is inventory-based substitution where consumers substitute for a product that is unavailable or protected from sale to that customer at that time. Customers may switch to a cheaper product regardless of the availability of their original preference and this type of demand substitution is price-based substitution. This model is a profit maximization model for deciding optimal pricing and production quantity where the unsold high-priced products are substituted to the low-priced product demand customers. The customer demands are stochastic and independent. We develop a one-period model for optimal production quantity for a given price and for optimal prices for a given production quantity. We consider inventory-based substitution and price-based substitution in the pricing decisions. The main objective of this study is to develop analytical models to obtain the optimal solutions to support decision-makers in these environments. We develop standard numerical procedures for finding optimal solutions (numerical examples). The numerical study shows that the optimal production quantity of newly manufactured product is greater than that of the equivalent newsvendor problem (with zero holding and shortage costs and no substituted demand), and the optimal production level of remanufactured product is less than that of the equivalent newsvendor problem. The optimal prices are less than those of the equivalent deterministic model. The limitations of this work suggest that the need for future research that enables firms to cope with the general case where there are multiple markets and capacity resource constraint.

목차

Ⅰ. Introduction
Ⅱ. Literature review
Ⅲ. The Mathematical Model
Ⅳ. Numerical study
Ⅴ. Conclusion
References
Abstract

키워드

저자

• Sang-Won Kim [ College of Business Administration, University of Ulsan ]

참고문헌

발행기관

간행물

표지보기 관심저널 등록

• 간행물명

  생산성연구: 국제융합학술지 [Productivity Research: An International Interdisciplinary Journal]

• 간기

  격월간

• pISSN

  1225-3553

• 수록기간

  1987~2025

• 등재여부

  KCI 등재

• 십진분류

  KDC 325 DDC 330