Abstract
The joint production planning and used product acquisition pricing problem is studied for a hybrid manufacturing and remanufacturing system. It is assumed that the return quantity of used products nonlinearly increases as their acquisition price increases, and the proportion of returned products which can be recovered into new product is stochastic and assumed to follow a know distribution. The remanufactured product can perfectly substitute the newly produced product, and both of them can be used to fulfill the market demand which is also uncertain. The objective is to maximize the overall profit of the hybrid system through simultaneously optimizing the decisions for pricing the used product and planning the production quantities of newly produced products and remanufactured products. An extended newsvendor model is developed to formulate the production planning and pricing problem, and its properties are analyzed. A numerical example is reported.
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