Seminar: A Model for Joint Pricing of Original and Spare Products with Strategic Customers

SEMINAR 

DEPARTMENT OF INDUSTRIAL ENGINEERING 

A Model for Joint Pricing of Original and Spare Products with 

Strategic Customers

Volkan Yaman,

Incora

Abstract:

There is an ongoing conflict between independent Authorized Service Providers (ASP) and Original Equipment Manufacturers (OEM) for the repair service business potential. ASPs blame OEMs for trying to monopolize the aftermarket by not selling the spare parts to them at fair prices and claim spare part provision should be regulated by governments to prevent the loss of social welfare of the community. We investigated the product and spare part pricing strategy of a durable goods monopolist OEM and repair service pricing of ASP in a 2-period setting, where the product is subject to deterioration and obsolescence effects and have a failure probability. We developed 4 optimization models to analyze the centralized and decentralized cases with the myopic and strategic consumer decisions.

Keywords: Spare parts pricing, consumer behavior, aftermarket competition

Short Bio: 

Volkan Yaman is a PhD student in Industrial Engineering at Bogazici University. He has BS degree in Industrial Engineering at ITU (2002) and MS degree at Galatasaray University (2005). He received MS degree in Mathematics at Marmara University in 2019. He has professional experience and academic interest in supply chain subjects. 

All interested are cordially invited.  

DATE:  May 15, 2026

TIME:  Friday, 15:00

ROOM: Engineering Building, M3100