Optimal pricing for hybrid systems with substitutive demands

• Main Authors: Pei-HoChen, 陳丕和
• Other Authors: Yu-Shiang Huang
• Format: Others
• Language: zh-TW
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/15729908514172327659

碩士 === 國立成功大學 === 工業與資訊管理學系碩博士班 === 98 === Abstract Due to the over consumption of the Earth’s resources, the awareness of preserving global environment is gradually important to product manufacturers. It thus becomes a marketing issue that remanufactured products with environmental conscious can attract more consumers which makes manufacturers more active in engaging used-product reproduction activities. When manufacturers collect used-products and perform the remanufacturing process, manufacturers will have both production systems for manufacturing and remanufacturing which are then called “Hybrid system with remanufacturing.” Manufacturers with hybrid systems have to consider the competition of demands for the two products produced by the two production systems when selling products. Customer will choose either product according to their preferences including product prices. It is desirable to set proper prices for both products. In this paper, a manufacturer with a hybrid system which produces two types of products simultaneously is considered. By considering the demand substitution and competition of the two product types and their corresponding costs, we proposed an approach to obtain the proper prices for both the new product and remanufactured product along with their optimal production quantities to maximize the manufacturer’s overall expected profits. Key words: remanufacturing, hybrid system