Based on the multi-level optimization model of remanufacturing and pricing balance strategy research under TIFR subsidy in China

¹ Reading Academy, Nanjing University of Information Science & Technology, Nanjing, China
² School of Management Science and Engineering & China Institute of Manufacturing Development, Nanjing University of Information Science & Technology, Nanjing, China
³ Eberly College of science, Pennsylvania State University, State College, America

^a* 839476161@qq.com
^b liyan@nuist.edu.com
^c xbj5036@psu.edu

Abstract

Remanufacturing is one of the most effective forms of the recycling economy, and the “Trade-in for Remanufacturing” (TIFR) program in China plays an important role in the development of remanufacturing. To understand this new business model of remanufacturing, the price and demand relationship of the NP and RP are examined in two periods, considering TIFR subsidy which is in practice in China. Comparing integrated optimization scheme and tiered optimization scheme, this paper then researches the pricing strategy with TIFR subsidy respectively, as multi-object optimization is employed in the latter scheme. Tiered optimization pricing is found to improve the old customer’s TIFR enthusiasm, balance the remanufacturing system and work better with TIFR subsidy through numerical experiments. This paper studies the impacts of subsidy rate, receptiveness to RP, and the mixture of them, then verifies the proposed model and gives an inspiration to the management of the new remanufacturing business model about TIFR subsidy.