A supply chain model considering downstream returns remanufacturing and pricing decision

摘要

In this paper we develop a supply chain model consisting of a supplier and a manufacturer. The manufacturer faces a stochastic and price-sensitive demand, orders a component from the supplier to manufacture new products, and also remanufactures the product returns with a stochastic quantity. The supplier chooses the wholesale price of the component, using his foresight on the manufacturer's response. We analyze the supply chain model under the wholesale price contract, obtain the analytic solution of manufacturer's selling price, order quantity and remanufacturing quantity. The supplier's decision is studied by numerical experiments and the influence of parameters is further studied.