News: Pricing used products for remanufacturing
Remanufacturing is one of recovery options for used products. As remanufacturing requires a continuous supply of used products, the economic incentive is required to attract customers to return their used products (called cores) and the problem of pric
Tuesday, 4th March 2008
Such a pricing problem is analogous to pricing an option, which can be used to sell the remanufactured cores (called core products). As sales price of core products follows a geometric Brownian motion, we propose a model here to evaluate the acquisition price of cores. This model links core acquisition price with the sale price of core product but assumes other costs such as logistics and remanufacturing to be deterministic. We have presented a numerical example to show its applicability. Since the model proposed here is generic, it is believed that the proposed model can be used in setting the core prices in many situations. These academic papers are available to purchase through Sciencedirect.com, usually at US$30 each. To do this, it is necessary to register via the weblink given.