The "trade-in for remanufactured" subsidy has been piloted in China,by which the market purchasing behaviors of related new and remanufactured parts and the enterprise's pricing decisions are affected.Based on characteristics of the parts' different distribution channels, the market is segmented according to used part's quality grades in after-sale channel. In consideration of subsidy and customer's trade-in preference,the manufacturer's profit model of tiered pricing is constructed and piecewise optimized.With the optimized pricing strategies, the cost conditions for enterprise to build tiered remanufacturing system and the suggestions for government to award remanufactured partsubsidy qualification are concluded. Since the remanufacturing environment of leading and general enterprises is different, different example analyses are taken to show the subsidy's influences on pricing decisions of leading and general remanufacturing enterprises, and also the impacts on tiered remanufacturing decisions of general enterprise with changing customer's trade-in preference. Results indicate that tiered pricing can boost the overall profits of the remanufacturing system while the trade-in subsidy shows different effects on leading and general enterprises, so the timing and proportion of subsidy should be chosen based on the characteristics of the target industries and enterprises combined with other measures.
LI Yan, LIN Xin-yi, DA Qing-li
. Tiered Pricing based Ongraded Quality of Used Parts and “Trade-in for Remanufactured” Subsidy[J]. Chinese Journal of Management Science, 2019
, 27(1)
: 131
-142
.
DOI: 10.16381/j.cnki.issn1003-207x.2019.01.013
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