Optimal pricing and greening decisions in a supply chain when considering market segmentation. (English) Zbl 1518.90019
Summary: This study investigates the optimal pricing and the remanufactured product’s greening decisions in a supply chain consisting of one manufacturer and one retailer. Under manufacturer-led Stackelberg games, three remanufacturing systems, namely, centralized, decentralized manufacturer, and decentralized retailer-remanufacturing, are considered. Consumers in the market are divided into normal and green consumers according to whether they consider environmental issues. We first demonstrate the conditions under which the manufacturer or retailer should engage in remanufacturing. Second, despite cannibalization, a centralized remanufacturing system exhibits higher efficiency linked with higher market coverage and leads to a higher profit compared to manufacturer/retailer decentralized alternatives. Finally, numerical studies and sensitivity analyses are used to examine the sensitivity of optimal pricing and greening decisions.
MSC:
| 90B06 | Transportation, logistics and supply chain management |
| 90B30 | Production models |
| 91B76 | Environmental economics (natural resource models, harvesting, pollution, etc.) |
| 90B50 | Management decision making, including multiple objectives |
| 91B24 | Microeconomic theory (price theory and economic markets) |
| 91A12 | Cooperative games |
Keywords:
remanufactured product; environmentally conscious consumers; manufacturer and retailer market segmentation decision; manufacturer-retailer Stackelberg game; greenness levelReferences:
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