In recent years, the government put more attention on the issues of environmental protection and resource reuse. Many enterprises are also actively engaged in product recycling , remanufacturing, and other related operations, hoping to reduce the cost of raw materials procuring and increase products’ value-added. Therefore, the management of reverse logistics and the study of Closed-loop Supply Chain have become important research issues nowadays.
However, the recycling and reselling of used products belong to the scope of activities of reverse logistics. When there are too many used and new products on the market, the firm''s sales of various products will be affected, and further impacts the firm''s profits. In view of this, the manufacturer''s ability to integrate a variety of products and pricing strategies is an important factor affecting corporate profits. On the other hand, the structure of the supply chain is also an important factor affecting the profits of manufacturers. Traditional supply chain are mostly decentralized channel architecture, in recent years, many supply chains transit to adopt centralized channel framework for supply chain coordination, increasing information sharing and reducing the bullwhip effect, hoping to enhance the overall supply chain performance.
Therefore, this study explores a variety of products’ pricing strategy in the same time, which means that in the situation of the original models, the new, original and used products all exist in the product market, considering different prices of various products have different impact on product sales and firm profit, developing the pricing strategy to maximize corporate profits. In addition, this study builds the model of decentralized channel and the model of centralized channel individually to assess the optimal price of products in different scenarios, analyzing the benefit of overall supply chain, and investigating whether it will be higher than before when taking centralized channel strategy.
The results reveal that utilities of various products and changes of sales periods will directly affect their product pricing and profits. Among them, if the original product’s utility is closer to the new product’s utility, the total supply chain profit is smaller. That means that when lacking innovation in new products, the customer purchase intention might be affected, impacting the profits of manufacturers. In the environment of the second period, increasing the utility of used products will let the price of used products higher, as well as the total supply chain profits. Likewise, increasing the utility of original products will let their price higher, and have significant positive effect to the supply chain’s performance. On the other hand, compared to the decentralized channel, firms which adopt centralized channel strategy can effectively reduce product prices in order to increase customer purchase intention, and improving total supply chain profit.