Pricing Strategy for End-of-Life Electrical and Electronic Products with Remanufacturing under Joint Recovery Mode.

Implementing a closed-loop supply chain in the appliance industry offers great practical significance given the characteristics of remanufacturing the decomposed parts of end-of-life electrical and electronic products. However, only few studies have analyzed the integration of a closed-loop supply chain for such products. To characterize this supply chain, find a suitable recovery mode, and determine its pricing strategy, a closed-loop supply chain with a manufacturer, retailer, third party recycling center, and consumers was designed. Afterward, a new joint recovery mode conducted by a retailer and third party recycling center was determined, and some pricing decision models under different mechanisms were built. Finally, corresponding operations management strategies were proposed by comparing pricing decision strategies under the cooperative and non-cooperative mechanisms based on game theory and optimization theory. The results demonstrate that the optimal selling price of each member enterprise under different mechanisms is the decreasing function of the sensitivity coefficient of consumers to selling price. Meanwhile, the overall profit of a closed-loop supply chain under different mechanisms gradually increases along with the proportion of remanufactured parts in end-of-life electrical and electronic products that can be directly used in remanufacturing. Moreover, Adopting different remanufacturing strategies under various operating mechanisms can differentiate the levels of profit. The proposed joint recovery mode is generally supportive of transaction cost theory, and the pricing strategy under different mechanisms is expected to have practical implications for enterprises to improve their operation benefits. [ABSTRACT FROM AUTHOR]