Optimal pricing and production decisions in utilizing reusable containers

Date

2013-06-01

Author

Atamer, Busra
Bakal, İsmail Serdar
Bayındır, Zeynep Pelin

Metadata

Show full item record

This work is licensed under a Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 International License.

Item Usage Stats

182
views

0
downloads

In this study, we focus on pricing and production decisions in utilizing reusable containers with stochastic customer demand. We consider a manufacturer that sells a single product to the customers in reusable containers with two supply options: (i) brand-new containers and (ii) returned containers from customers. The return quantity depends on both customer demand and the acquisition fee determined by the manufacturer. The unit cost of production using brand-new containers is different than the unit cost of reusing returned containers. The customers are indifferent between brand-new and recovered products. We also consider resource restrictions on the production operations. In this setting, we investigate the optimal pricing and production decisions in order to maximize the manufacturer's profit. We characterize the optimal acquisition fee and the optimal order quantity of brand-new containers analytically and investigate the effect of parameters through an extensive computational study.

Subject Keywords

Closed-loop supply chain management, Reverse logistics, Acquisition management, Reusable containers, Deposit-refund systems

URI

https://hdl.handle.net/11511/48760

Journal

INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS

DOI

https://doi.org/10.1016/j.ijpe.2011.08.007

Collections

Department of Industrial Engineering, Article

Suggestions

OpenMETU
Core

Optimal pricing and production decisions in reusable container systems Atamer, Büşra; Bakal, İsmail Serdar; Department of Industrial Engineering (2010) In this study, we focus on pricing and production decisions in reusable container systems with stochastic demand. We consider a producer that sells a single product to the customers in reusable containers with two supply options: (i) brand-new containers, (ii) returned containers from customers. Customers purchasing the products may return the containers to the producer to receive a deposit price. The return quantity depends on both customer demand and the deposit price determined by the producer. Hence, th...
Analysis of an inventory system with advance emand information and supply uncertainty Arıkan, Emel; Süral, Haldun; Department of Industrial Engineering (2005) In this study we address a periodic review capacitated inventory system with supply uncertainty where advance demand information is available. A stochastic dynamic programming formulation is applied with the objective of minimizing the expected inventory related costs over a finite horizon. Three different supply processes are assumed. Under the all-or-nothing type supply process and partially available supply process, the structure of optimal policy is proved to be a base stock policy and numerical example...
Optimal pricing and ordering policy for non-instantaneous deteriorating items under inflation and customer returns Ghoreishi, M.; Mirzazadeh, A.; Weber, Gerhard Wilhelm (Informa UK Limited, 2014-01-01) This paper deals with an economic production quantity inventory model for non-instantaneous deteriorating items under inflationary conditions considering customer returns. We adopt a price-and time-dependent demand function. Also, the customer returns are considered as a function of both price and demand. The effects of time value of money are studied using the Discounted Cash Flow approach. The main objective is to determine the optimal selling price, the optimal replenishment cycles, and the optimal produ...
Joint quantity flexibility for multiple products in a decentralized supply chain Karakaya, Selcuk; Bakal, İsmail Serdar (2013-02-01) In this study, we analyze a decentralized supply chain with a single retailer and a single manufacturer where the retailer sells multiple products in a single period. The products differ in terms of a limited number of features only. The retailer places initial orders based on preliminary demand forecasts at the beginning of the period and has an opportunity to modify its initial order after receiving perfect demand information. However, the final orders of the retailer are constrained by its initial orders...
Closed-loop supply chain network design under demand, return and quality uncertainty Batun, Sakine (2018-07-08) We consider the problem of designing a closed-loop supply chain (CLSC) network in the presence of uncertainty in demand quantities, return rates, and quality of the returned products. We formulate the problem as a two-stage stochastic mixed-integer program (SMIP) that maximizes the total expected profit. The first-stage decisions in our model are facility location and capacity decisions, and the second-stage decisions are the forward/backward flows on the network and hence the production/recovery quantities...

Citation Formats

B. Atamer, İ. S. Bakal, and Z. P. Bayındır, “Optimal pricing and production decisions in utilizing reusable containers,” INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS, pp. 222–232, 2013, Accessed: 00, 2020. [Online]. Available: https://hdl.handle.net/11511/48760.