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Pricing End-Of-Life Components, Surendra Gupta, Srikanth Vadde, Sagar Kamarthi
Pricing End-Of-Life Components, Surendra Gupta, Srikanth Vadde, Sagar Kamarthi
Surendra M. Gupta
The main objective of a product recovery facility (PRF) is to disassemble end-of-life (EOL) products and sell the reclaimed components for reuse and recovered materials in second-hand markets. Variability in the inflow of EOL products and fluctuation in demand for reusable components contribute to the volatility in inventory levels. To stay profitable the PRFs ought to manage their inventory by regulating the price appropriately to minimize holding costs. This work presents two deterministic pricing models for a PRF bounded by environmental regulations. In the first model, the demand is price dependent and in the second, the demand is both price …
Pricing Decisions For Product Recovery Facilities In A Multi-Criteria Setting Using Genetic Algorithms, Surendra Gupta, Srikanth Vadde, Sagar Kamarthi
Pricing Decisions For Product Recovery Facilities In A Multi-Criteria Setting Using Genetic Algorithms, Surendra Gupta, Srikanth Vadde, Sagar Kamarthi
Surendra M. Gupta
Independent and small scale product recovery facilities (PRFs) often struggle to achieve profits when faced with inconsistent inflows of discarded products, varying demand patterns for recovered components, and stringent environmental regulations. Inconsistent inflows coupled with the varying demand cause undue fluctuations in inventory levels and frequently affect costs involved in product recovery operations. An effective pricing strategy can stabilize the fluctuations in demand and consequently can allow PRFs to control inventory levels. This research determines the prices of reusable and recyclable components and acquisition price of discarded products that allow PRFs to simultaneously maximize their financial returns and minimize the …