Independent and small scale product recovery facilities (PRFs) often struggle to achieve profits when faced with inconsistent inflows of discarded products, varying demand patterns for recovered components, and stringent environmental regulations. Inconsistent inflows coupled with the varying demand cause undue fluctuations in inventory levels and frequently affect costs involved in product recovery operations. An effective pricing strategy can stabilize the fluctuations in demand and consequently can allow PRFs to control inventory levels. This research determines the prices of reusable and recyclable components and acquisition price of discarded products that allow PRFs to simultaneously maximize their financial returns and minimize the product recovery costs. Genetic algorithms and analytic hierarchy process are employed to solve this multi-criteria decision making problem.
Economic models, Second-hand markets, Multi-criteria decision making, Product recovery, Genetic
Copyright 2006, Society of Photo-Optical Instrumentation Engineers
This paper was published in Proceedings of SPIE (Volume 6385) and is made available as an electronic reprint with permission of SPIE. One print or electronic copy may be made for personal use only. Systematic or multiple reproduction, distribution to multiple locations via electronic or other means, duplication of any material in this paper for a fee or for commercial purposes, or modification of the content of the paper are prohibited.
Society of Photo-Optical Instrumentation Engineers
Gupta, Surendra M.; Vadde, Srikanth; and Kamarthi, Sagar V., "Pricing decisions for product recovery facilities in a multi-criteria setting using genetic algorithms" (2006). . Paper 94. http://hdl.handle.net/2047/d10009991
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