Resource title

Market segmentation and production technology selection for remanufacturable products

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Resource description

Remanufacturing is a production strategy whose goal is to recover the residual value of used products. Used products can be remanufactured at a lower cost than their initial production cost, but remanufactured products are valued less than new products by consumers. The choice of production technology influences the value that can be recovered from a used product. In this paper, the authors solve the joint market segmentation and production technology selection problem faced by a manufacturer who considers introducing a remanufacturable product in a market that consists of heterogeneous consumers. Their analysis delineates the product and market characteristics that dictate whether producing a remanufacturable product is profitable, and reveals the importance of the integrated management of new and remanufactured product lines.

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en

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application/pdf

Resource resource URL

http://flora.insead.edu/fichiersti_wp/inseadwp2001/2001-47.pdf

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Copyright INSEAD. All rights reserved