Pricing decision for recycling and remanufacturing supply chain considering consumer online consumption preferences and recycled products’ quality

Abstract

With the organic integration of the Internet and remanufacturing industry, traditional manufacturers can recycle used products and sell products (including new and remanufactured products) through e-commerce retail platforms. A recycling and remanufacturing supply chain with three members (manufacturer, e-commerce retail platform, third-party recycler) is constructed in this paper. Manufacturer has remanufacturing capabilities, and the e-commerce retail platform can provide logistics service. In response to the organic integration of the Internet and remanufacturing industry, we mainly consider the pricing decisions of consumer preferences for online sales models and recycled products’ quality. Based on the impact of consumer used product recycling promotion activities on supply chain, a pricing game model was constructed for three recycling channels: manufacturer, e-commerce retail platform, and third-party recycler. Optimal pricing decision, logistics service level, used product recycling promotion intensity index, and recycling rate were obtained. Research has shown that consumer preferences can significantly improve supply chain logistics service level, pricing, market demand, and profits; Strengthening consumer awareness of remanufacturing used products and improving recycled products’ quality can not only lower consumer purchase prices and expand consumer demand, but also increase profits of supply chain members.

Keywords

• e-commerce retail platform
• recycling and remanufacturing supply chain
• consumer preferences
• logistics service level
• recycled products’ quality