Pricing of remanufacturing supply chain considering quality upgrading under carbon trading

To determine pricing decisions of remanufacturing supply chains considering quality upgrading, the free carbon quota was allocated from the historical intensity method to construct differential pricing decision models of remanufacturing supply chain without/with product quality upgrade. The optimal pricing and quality upgrading strategies of these two models were obtained by backward induction. The two models were compared and the relevant conclusions were verified through a numerical example. The result showed that quality upgrading could help to improve the quality level, sales price, market demand of products and the profits of supply chain members and system; increasing emission reduction targets and carbon trading prices would decrease the quality upgrading, market demand of products and the profits of supply chain members and system, but help to reduce emissions; improving the quality upgrade efficiency, consumer quality sensitivity and the quality level of used products would raise the quality level, sales price, market demand of products and the profits of supply chain members and system. Therefore, the manufacturer should invest in quality upgrade and improve the quality upgrade efficiency and the quality degree of used products to make more profits; the government should set reasonable emission reduction targets to balance emission reduction effects and supply chain profitability. © 2022, Editorial Department of CIMS. All right reserved.