A Model for Pricing Used Products and Replacement Parts in Reverse Logistics

A unique specification in remanufacturing is the uncertainty of returned flows. This makes the coordination between supply and demand difficult for the firm. As a result, remanufacturers typically use pricing tools to control the return flow of used products.

In this study, a model is presented for optimal quantity and price of used products and the price of used products with replacement parts after collection and consolidation based on their quality levels. This model was developed from the perspective of the remanufacturer and the consolidation center. When the consolidation center receives the remanufacturer's demand, the consolidation center and the remanufacturer use the proposed model for evaluating the optimal quantity and the acquisition price of used products as well as the price provided by the remanufacturer to the consolidation center so that they both reach maximum profit. The supply of used products is random. The presented model is an integer nonlinear programming (INLP) model. Consequently, due to the complexity of the problem, The SA and GA metaheuristic methods are used to solve the model.