Market Segmentation and Product Technology Selection for Remanufacturable Products

Remanufacturing is a production strategy whose goal is to recover the residual value of used products. Used products can be remanufactured at a lower cost than the initial production cost, but consumers value remanufactured products less than new products. The choice of production technology influences the value that can be recovered from a used product. In this paper, we solve the joint pricing and production technology selection problem faced by a manufacturer that considers introducing a remanufacturable product in a market that consists of heterogeneous consumers. Our analysis discusses the market and technology drivers of product remanufacturability and identifies some phenomena of managerial importance that are typical of a remanufacturing environment.

• 저널Management Science · 51(8) · 1193–1205
• 토픽Sustainable Supply Chain Management · Strategy and Management
• DOI10.1287/mnsc.1050.0369
• 저자Laurens Debo, L. Beril Toktay, Luk N. Van Wassenhove