ISYE SEMINAR SERIES - Pricing and Production Technology Selection for Remanufacturable Products

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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 their initial production cost, but remanufactured products are valued less than new products by consumers. The choice of production technology influences the value that can be recovered from a used product. In this paper, we solve the joint market segmentation and production technology selection problem faced by a manufacturer who considers introducing a remanufacturable product in a market that consists of heterogeneous consumers. Our analysis delineates the product and market characteristics that dictate whether producing a remanufacturable product is profitable, and reveals the importance of the integrated management of new and remanufactured product lines.


  • Workflow Status: Published
  • Created By: Barbara Christopher
  • Created: 10/08/2010
  • Modified By: Fletcher Moore
  • Modified: 10/07/2016


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