The bundling sales pricing strategy of the closed-loop supply chain under patent protection

Abstract

Purpose – The purpose of this article is based on the unit patent license fee model in the closed-loop supply chain. Design/methodology/approach – This paper analyzes the impact of the bundling strategy of the retailer selling new products and remanufactured products on the closed-loop supply chain under the condition that the original manufacturer produces new products and the remanufacturer produces remanufacturing products. Findings – The results show that alternative products can be bundled, and in many cases, the bundling of remanufactured products and new products is better than selling alone. Originality/value – If the retailer chooses bundling, for the remanufacturer, when certain conditions are met, the benefits of bundling are greater than the separate sales at that time; for the original manufacturer, when the recycling price sensitivity coefficient is high, the bundling is better than separate sales.

Keywords

• Closed-loop supply chain
• Bundling sales
• Alternative product
• Patent licensing
• Stackelberg game