Pricing of end-of-life items with obsolescence

Title:
Pricing of end-of-life items with obsolescence
Creator:
Vadde, Srikanth (Author)
Kamarthi, Sagar V. (Author)
Gupta, Surendra M. (Author)
Language:
English
Publisher:
IEEE
Copyright date:
2006
Type of resource:
Text
Genre:
Articles
Format:
electronic
Digital origin:
born digital
Abstract/Description:
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.
Comments:
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)
Subjects and keywords:
End-of-Life Processing
Product Recovery Facilities (PRFs)
Industrial Engineering
Mechanical Engineering

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