DocumentCode
591110
Title
An optimal pricing policy for reuse items with incentive subsidy demand
Author
Yu, J.C.P. ; Liour, Y.C. ; Cheng, S.J. ; Wee, H.M.
Author_Institution
Logistics Manage. Dept., Takming Univ. of Sci. & Technol., Taipei, Taiwan
fYear
2012
fDate
27-29 Aug. 2012
Firstpage
315
Lastpage
318
Abstract
In this study, we develop a pricing policy for reuse items that return with receiving an incentive subsidy. The probability of selling is assumed to be a decreasing function of price and availability; thus, not all units are sold. Due to the complexity of the non-linear problem, the Karush-Kuhn-Tucker (KKT) conditions are applied to determine the optimal value of the return subsidy and the selling price. A numerical example and sensitivity analysis on the optimal results are presented to validate the proposed model.
Keywords
environmental economics; pricing; probability; recycling; sensitivity analysis; KKT condition; Karush-Kuhn-Tucker condition; availability function; incentive subsidy demand; optimal pricing policy; price function; remanufacturing process; return subsidy; reuse item; selling price; selling probability; sensitivity analysis; remanufacturing; return-subsidy policy; reuse items;
fLanguage
English
Publisher
ieee
Conference_Titel
Computing and Networking Technology (ICCNT), 2012 8th International Conference on
Conference_Location
Gueongju
Print_ISBN
978-1-4673-1326-1
Type
conf
Filename
6418675
Link To Document