Table of Contents Author Guidelines Submit a Manuscript
Scientific Programming
Volume 2016 (2016), Article ID 5146032, 9 pages
http://dx.doi.org/10.1155/2016/5146032
Research Article

Optimal Uncertainty Decision of Innovation Products Output Based on Return Collection

Yi Su,1,2 Wei Sun,1,3 and Zhouzhou Lin1

1School of Economics and Management, Harbin Engineering University, Harbin 150001, China
2School of Economics and Management, Tsinghua University, Beijing 10010, China
3School of Science, Harbin Engineering University, Harbin 150001, China

Received 20 June 2016; Revised 19 August 2016; Accepted 24 August 2016

Academic Editor: Xiaofeng Xu

Copyright © 2016 Yi Su et al. This is an open access article distributed under the Creative Commons Attribution License, which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Abstract

As the length of time between product renewals decreases, the enterprises that make innovative products face new challenges. The production cost structure of innovative products can be changed by collecting product returns, which can be economically valuable for enterprises. Enterprises face both production and demand randomness; hence, it is important to improve the traditional optimal production decision-making model that considers the randomness of demand only. This paper divides innovative products into structural innovation products and improved innovation products. The paper studies the optimal single-period production decision between reused parts and conventional new parts in complementary and substitute relationships. It further gives the analytical expressions for satisfying the optimal production and provides some numerical examples. The research results indicate that when producing innovative products, whether based on structural or improved innovation, with the variance of the quantity of the recycled parts increasing, the optimal purchase quantity of the conventional parts will increase but the expected profits for the innovative products will decrease. With integrated substitution and complementation based on improved innovation, enhancing the fluctuation in the number of recycled parts has a greater impact on the optimal purchase quantity of the substitute conventional parts than that of the complementary parts.