Abstract: The accelerating product upgrading plus the support from the community and the government are rejuvenating the remanufacturing industry. A lot of enterprises have begun grading-based recycling, but they fail to consider grading recycling and remanufacturing as a whole. It is found that not all waste products are suitable for graded recovery pricing, and there exists an optimal number of recovery grades; the optimal number of recovery grades will be affected by the waste products recovery, remanufacturing characteristics and testing costs; the pricing decisions at different remanufacturing stages are different. Given the above findings, it is suggested to take a grading-based recycling and pricing strategy for the recyclables that are at different levels of quality, sensitive to price because of quality and remanufacturing cost and do not require a high testing cost, so as to effectively regulate the supply and demand of the recycling market with the help of the grading price signal, guide the rational flow and allocation of the recyclables and improve the recovery efficiency.

Key words: quality grading, graded recyclables pricing, recycling and remanufacturing, uncertainty in the quality of recyclables