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We analyze how salesforce incentives influence a firm's remanufacturing strategy and profitability. We first consider a salesforce incentive model based on the practice of a North American consumer products firm, which offers commissions based on the total revenue generated from new and remanufactured product sales. We then consider a model with differentiated linear commissions for new and remanufactured...
Despite documented benefits of remanufacturing, many manufacturers have yet to embrace the idea of tapping into remanufactured‐goods markets. In this article, we explore this dichotomy and analyze the effect of remanufacturable product design on market segmentation and product and trade‐in prices by studying a two‐stage profit‐maximization problem in which a price‐setting manufacturer can choose whether...
Remanufacturing is a product recovery option that upgrades the quality of returns to “as-good-as-new” conditions. Remanufactured products cost less, and are sold with the same or better warranty as for new products. In this paper, we consider a duopoly environment with two manufacturers in direct competition selling their respective new products on the primary market. Specifically, we address the...
This paper studies a two-period model in which a monopolistic manufacturer needs to decide the quantity of new products in the first period, as well as the selling price and quantity of remanufactured products in the second period, in order to maximize his total profit. The market size is fixed and the market segmentation is realized by the consumer's net utility. We focus on the competition between...
Along with the environment worsening, more and more enterprises intend to recycle and remanufacture the products. On the foundation of market segmentation, we used two periods longitudinal difference model to analyze the manufacturer's optimal price engineering management in the monopolistic market. Finally, the paper proposed some management suggestions for the manufacturer.
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