Dynamic Pricing Model for the Operation of Closed-Loop Supply Chain System

Jiawang Xu, Yunlong Zhu
DOI: 10.4236/ica.2011.24048                

Abstract

A class of closed-loop supply chain system consisting of one manufacturer and one supplier is designed, in which re-distribution, remanufacturing and reuse are considered synthetically. The manufacturer is in charge of recollecting and re-disposal the used products. Demands of ultimate products and collecting quantity of used products are described as the function of prices and reference prices. A non-linear dynamic pricing model for this closed-loop supply chain is established. A numerical example is designed, and the results of this example verified the model’s validity to price for the operation of closed-loop supply chain system.

Keywords

Closed-Loop Supply Chain, Manufacturing/Remanufacturing, Pricing, Dynamic Programming

Conflicts of Interest

The authors declare no conflicts of interest.

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