Differential Pricing Decisions of Integrated Remanufacture/Manufacture Supply Chain

To solve the pricing problem of integrated supply chain,the differential pricing decision for three different forms of the same product is studied by game theory on integrated R/M(remanufacture/manufacture) supply chain which is made up of a single manufacturer and retailer.Stackelberg equilibrium is obtained and the numerical simulation and analysis are given for the optimal pricing decision.The results show that integrated R/M supply chain which include new,remanufactured,second-hand products is closer to the reality;the price sensitive coefficient of new products and the price elasticity index for used-products have influence on the wholesale price and profits of manufacturer,and also on the retail price and profits of retailer;they should be taken into account together to maximize the manufacturer's and the retailer's own profits.