Selection of Products and Prices in Manufacturing and Remanufacturing Environment

In this paper, we consider a manufacturer who produces both new and remanufactured products facing a group of heterogeneous customers who self-select their optimal choices of products. Under such circumstances, we formulate a mathematical programming model that determines the products, prices, and acquisition prices for used products. Based on this model, we will discuss conditions under which remanufacturing can be encouraged.