Manufacturer decision models based on “trade-old-for-remanufactured” and consumer segmentation

GAO Pan, DING Xuefeng

Systems Engineering - Theory & Practice ›› 2020, Vol. 40 ›› Issue (4) : 951-963.

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Systems Engineering - Theory & Practice ›› 2020, Vol. 40 ›› Issue (4) : 951-963. DOI: 10.12011/1000-6788-2018-2411-13

Manufacturer decision models based on “trade-old-for-remanufactured” and consumer segmentation

  • GAO Pan, DING Xuefeng
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Abstract

In the context of "trade-old-for-remanufactured", the production and pricing strategies of the manufacturer were studied for the consumer segment market (where both original and new consumers exist). Firstly, five kinds of market demand structures were proposed according to the choice behavior of two kinds of consumers. On this basis, five decision models of the manufacturer were constructed, and the optimal production and pricing strategies of each decision model were proposed. Secondly, taking the market proportion of the original consumers as the analysis variable to compare and analyze the five optimal strategies, and the optimal strategy selection boundary of the manufacturer was proposed. The results show that when both types of consumers have demands for remanufactured goods, the manufacturer can obtain the largest market share. And the manufacturer's choice of optimal production and pricing strategies depends on the value range of the analysis variable and the size of value boundaries. Finally, the validity of the above conclusions was verified by the numerical simulation.

Key words

trade-old-for-remanufactured / consumer segmentation / decision models / production strategies / pricing strategies

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GAO Pan , DING Xuefeng. Manufacturer decision models based on “trade-old-for-remanufactured” and consumer segmentation. Systems Engineering - Theory & Practice, 2020, 40(4): 951-963 https://doi.org/10.12011/1000-6788-2018-2411-13

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Funding

National Natural Science Foundation of China (71771139)
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