ABSTRACT
This chapter presents a demand model that is dependent not only on the price of remanufactured products but also on the sales starting period of remanufactured products. It examines the Bass model and the cannibalization rate according to the discount rate of the remanufactured product price was used to design the demand model. The chapter explores a manufacturing–remanufacturing system to decide a production plan and inventory control policy in consideration of the quantity of reusable products affected by past demand and the cannibalization effect. It shows that demand model for newly manufactured products and remanufactured products that are affected by price while taking into consideration cannibalization and market expansion effects. The chapter considers a numerical experiment is performed to investigate the economic efficiency of a manufacturing–remanufacturing system with cannibalization effect. The demand for newly manufactured and remanufactured products changes not only with the cannibalization rate but also with the sales starting period.
