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Journal article
An analytical model for reverse automotive production planning and pricing
European Journal of Operational Research, Vol.3, pp.756-767
3
2008
Web of Science ID: WOS:000256902800012
Abstract
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%.
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Details
- Title
- An analytical model for reverse automotive production planning and pricing
- Publication Details
- European Journal of Operational Research, Vol.3, pp.756-767
- Resource Type
- Journal article
- Publisher
- North-Holland Pub. Co.; Amsterdam
- Series
- 3
- Copyright
- © 2007 Elsevier B.V.
- Identifiers
- WOS:000256902800012; 99380090350506600
- Academic Unit
- Business Administration; Lewis Bear Jr. College of Business
- Language
- English