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J4  2017, Vol. 14 Issue (4): 625-    DOI:
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Differential Pricing Strategies in Closed-Loop Supply Chain of Dual-Channel Remanufacturing
LIU Guangfu,LIU Wenxia
Tongji University, Shanghai, China

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Abstract  

Dual-channel closed-loop supply chain system including both original manufacturer and the third party remanufacturer is constructed. The differential pricing models with new product and two kinds of remanufactured products are established. The optimal pricing strategies are given under game theory, and optimal parameters are contrasted under different conditions. The results show that the prices of two other products increase with value discount coefficient of third party remanufacturing product. Two kinds of remanufactured products would cannibalize sales of the other products, but they expand total market share and increase profits of both original manufacturer and closed loop supply chain. The distribution of profits is dominated by original manufacturer through patent licensing fee. Most of the profits are obtained by original manufacturer in the closed-loop supply chain. When three kinds of products are produced at the same time, the total sales are the highest and both original manufacturer and closed loop supply chain could reap the highest profits. Based on the above results, some suggestions about the remanufacturing industry in China are given.

Key wordsclosed-loop supply chain      remanufacturing      differential pricing      heterogeneous demand     
Received: 23 June 2016     
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