Optimal Pricing and Production System for Integrated Logistics System Under Price Sensitive Uncertainty

We investigate a closed-loop supply chain in this article that manufacturer has two channels for satisfying the demand: producing brand-new products or remanufacturing returned items. There is no difference between brand-new products and returned one so they can be sold at the same market with the same price. In this article, demand has price sensitive uncertainty. Also returns are stochastic and price sensitive too. In addition we define acceptance quality level for acquiring returned products. Therefor a mathematical model developed to maximize total profit of system that determines selling price, production quantity of brand-new products and remanufactured one, acquisition price and minimum acceptance quality level for returned items.