New-Product Diffusion in Closed-Loop Supply Chains

Problem definition: We study the sales planning problem of a producer who sells new and remanufactured versions durable good over finite life cycle. investigate whether slowing down product diffusion by choosing to partially satisfy demand might be profitable for producer. Academic/practical relevance: provide insights into management in closed-loop supply chains uncovering role key market characteristics play profitability partial fulfillment as well its optimal timing magnitude. Methodology: develop dynamic model which arrives slightly modified Bass process, end-of-use products required remanufacturing are constrained earlier sales. Results: The plan involves when rate is high, profit margin from large, item limited demand. Partial extends stages cycle grows, items shrinks, or number consumers return their increases. It backlog more customers word-of-mouth effect dominates process lower. Finally, benefit delaying tends increase with rate. Managerial implications: Our findings suggest that deliberately backlogging some may an effective lever (in absence flexibility dynamically adjust prices) durable-good producers fast-clockspeed industries improve total profits jointly optimized items.