TY - JOUR
T1 - An analytical model for reverse automotive production planning and pricing
AU - Qu, Xiuli
AU - Williams, Julie Ann Stuart
PY - 2008/11/1
Y1 - 2008/11/1
N2 - Automotive shredders need a reverse production planning strategy that includes determining at what price to purchase vehicle hulks from different sources. In this paper, we formulate the automotive reverse production planning and pricing problem in a nonlinear programming model, develop an approximate supply function for hulks when adjacent shredders price independently, and compare two hulk pricing strategies in three trends for ferrous metal and hulk prices: constant, increasing and decreasing. The case study results indicate that adjusting purchase price based on hulk composition in coordination with planning for purchasing, storing and processing can increase net revenue by 7-15%. © 2007 Elsevier B.V. All rights reserved.
AB - Automotive shredders need a reverse production planning strategy that includes determining at what price to purchase vehicle hulks from different sources. In this paper, we formulate the automotive reverse production planning and pricing problem in a nonlinear programming model, develop an approximate supply function for hulks when adjacent shredders price independently, and compare two hulk pricing strategies in three trends for ferrous metal and hulk prices: constant, increasing and decreasing. The case study results indicate that adjusting purchase price based on hulk composition in coordination with planning for purchasing, storing and processing can increase net revenue by 7-15%. © 2007 Elsevier B.V. All rights reserved.
KW - Automotive shredding
KW - Environment
KW - Pricing
KW - Reverse production planning
UR - https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=42949172898&origin=inward
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U2 - 10.1016/j.ejor.2007.06.041
DO - 10.1016/j.ejor.2007.06.041
M3 - Article
SN - 0377-2217
VL - 190
SP - 756
EP - 767
JO - European Journal of Operational Research
JF - European Journal of Operational Research
IS - 3
ER -