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
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;
Conference_Titel :
Computing and Networking Technology (ICCNT), 2012 8th International Conference on
Conference_Location :
Gueongju
Print_ISBN :
978-1-4673-1326-1
