Abstract
Variability in the inflow of end-of-life (EOL) products and fluctuating inventory levels often make the processing of EOL products an economically risky operation for product recovery facilities (PRFs). Choosing an appropriate pricing policy can enhance the performance of PRFs by methodically clearing their inventory and increasing profits. This work presents two pricing models to counter the prospect of product obsolescence that can happen either gradually or suddenly. Product obsolescence can cause demand drop and inventory pile up, both of which could dent the revenues of PRFs. In the first model, gradual obsolescence and environmental regulations that limit the disposal quantity in landfills are considered. In the second model, the case of sudden obsolescence is addressed. Examples are presented to illustrate the pricing strategies for each model.
Keywords
End-of-Life Processing, Product Recovery Facilities (PRFs)
Disciplines
Industrial Engineering | Mechanical Engineering
Publisher
IEEE
Publication Date
2006
Rights Information
(c) 2006 IEEE. Personal use of this material is permitted. Permission from IEEE must be obtained for all other users, including reprinting/ republishing this material for advertising or promotional purposes, creating new collective works for resale or redistribution to servers or lists, or reuse of any copyrighted components of this work in other works.
Rights Holder
IEEE
Permanent URL
Recommended Citation
Vadde, Srikanth; Kamarthi, Sagar V.; and Gupta, Surendra M., "Pricing of end-of-life items with obsolescence" (2006). Mechanical and Industrial Engineering Faculty Publications. Paper 24. http://hdl.handle.net/2047/d20000306
Click button above to open, or right-click to save.
COinS
Notes
Originally published in the Proceedings of the 2006 IEEE International Symposium on Electronics and the Environment, San Francisco, CA, May 8-11, 2006 (CD-ROM)