Application of adversarial risk analysis model in pricing strategies with remanufacturing
Abstract: This paper mainly
focus on the application of adversarial risk analysis (ARA) in pricing strategy
with remanufacturing. We hope to obtain more realistic results than classical
model. Moreover, we also wish that our research improve the development of ARA
in pricing strategy of manufacturing or remanufacturing.
Approach: In order to gain more actual research, combining adversarial
risk analysis, we explore the pricing strategy with remanufacturing based on
Stackelberg model. Especially, we build OEM’s 1-order ARA model and further
study on manufacturers and remanufacturers’ pricing strategy.
Findings: We find the OEM’s 1-order ARA model for the OEM’s product cost
C. Besides, we get according manufacturers and remanufacturers’ pricing
strategies. Besides, the pricing strategies based on 1-order ARA model have
advantage over than the classical model regardless of OEMs and remanufacturers.
Research implications: The research on application of ARA imply that we
can get more actual results with this kind of modern risk analysis method and
ARA can be extensively in pricing strategies of supply chain.
Value: Our research improves the application of ARA in remanufacturing
industry. Meanwhile, inspired by this analysis, we can also create different
ARA models for different parameters. Furthermore, some results and analysis
methods can be applied to other pricing strategies of supply chain.
Keywords: Pricing strategy;
Remanufacture; original equipment manufacturer; Adversarial risk analysis
Author: Liurui Deng, Bolin Ma
Journal Code: jptindustrigg150018
