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EOR
2010

Managing new and differentiated remanufactured products

13 years 11 months ago
Managing new and differentiated remanufactured products
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 finitehorizon, multi-period setting, the optimal policy is not necessarily monotone in remanufacturing savings. Key words: Remanufacturing; differentiated products; monopoly; product portfolio; multi-period horizon. ____________________________________________________________________________________
Geraldo Ferrer, Jayashankar M. Swaminathan
Added 10 Dec 2010
Updated 10 Dec 2010
Type Journal
Year 2010
Where EOR
Authors Geraldo Ferrer, Jayashankar M. Swaminathan
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