Financing decisions in a supply chain when considering product returns

2021 ◽  
Author(s):  
Qinglin Luo ◽  
Jianwen Luo
Keyword(s):  
Supply Chain ◽  
Product Returns ◽  
Financing Decisions

scholarly journals Bricks and Clicks: Decisions in an O2O Supply Chain Considering Product Returns

IEEE Access ◽  
2019 ◽  
Vol 7 ◽  
pp. 180292-180304 ◽  
Author(s):  
Wei Feng ◽  
Hong Chen
Keyword(s):  
Supply Chain ◽  
Product Returns

Seller-induced scarcity and price-leadership

2016 ◽  
Vol 27 (2) ◽  
pp. 552-569 ◽  
Author(s):  
Rafay Ishfaq ◽  
Uzma Raja ◽  
Shashank Rao
Keyword(s):  
Supply Chain ◽  
Simulation Study ◽  
Empirical Data ◽  
Process Model ◽  
The Internet ◽  
Product Returns ◽  
Price Leadership ◽  
Content Type ◽  
Control Product ◽  
Internet Retail

Purpose – The purpose of this paper is to evaluate the interaction between inventory availability (scarcity) and pricing levels (price-leadership (PL)), and its effect on product returns in the internet retail supply chain. Specifically, this paper investigates how supply chain managers can use inventory (seller-induced scarcity) and pricing (PL) levers to control product returns. Design/methodology/approach – Empirical data of sales and product returns from an internet retailer is analyzed to identify the scale of the effect that product scarcity and PL has on product returns. These factors are considered in developing a sales-return process model which is used with empirical data in a simulation study. The study evaluates changes in product returns for different policy settings related to PL and inventory levels. Findings of the simulation study are validated using statistical analysis of empirical data. Findings – PL and seller-induced product scarcity affect the rate of product returns; however, the scale of this effect depends on inventory and pricing decisions. The results identify an inflection boundary based on scarcity and PL levels which reverses this effect. This reversal is explained by underlying principles at play regarding buyers’ valuation of the sale and corresponding product attributes. Practical implications – Supply chain managers in internet retail can leverage lower inventory under the seller-induced scarcity approach to improve revenues. However, reducing inventory levels beyond a threshold is counterproductive, due to an associated increase in product returns. Similarly, setting market competitive prices (PL) can help reduce product returns. Under the seller-induced scarcity condition, this effect is reversed for inventory levels below a threshold. Retailers can implement the methodology developed in this paper to identify the inventory-price threshold that can help increase revenues while keeping the rate of product returns at a manageable level. Originality/value – This research extends prior work regarding the role of product scarcity and pricing on product returns and develops a deeper understanding of how these factors can be managed to control product returns in the internet retail setting.

scholarly journals Development of cores acquisition model with two switching mechanisms in a retailer-oriented closed-loop supply chain system

2021 ◽  
Vol 2 (3 (110)) ◽  
pp. 6-15
Author(s):  
Evi Yuliawati ◽  
Pratikto Pratikto ◽  
Sugiono Sugiono ◽  
Oyong Novareza
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
New Products ◽  
Product Returns ◽  
Fixed Rate ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Flat Rate ◽  
Taking Charge ◽  
Rate Mechanism

Retailer-Oriented Closed-Loop Supply Chain (ROCLSC) is an integration of forward and reverse supply chains with retailer taking charge of the remanufacturing, distribution, and collecting activities. This type of mechanism is quite effective, since the majority of product returns management is performed by the retailer. However, in practical industries, the implementation of ROCLSC is still limited. In this study, we investigate a ROCLSC system that involves an Original Equipment Manufacturer (OEM) and a retailer. OEM plays a role as a producer of new products, while the retailer is in charge of remanufacturing, collecting, as well as selling and distributing both newly manufactured and remanufactured products. We develop a mathematical model to maximize the profit of each party. Although several studies have developed models for cores acquisition, here we apply a different cores switching mechanism. We introduced the fixed rate and flat rate mechanisms used in the business-to-business (B2B) system, where product functions are very important to consumers. In addition, this research focuses on ROCLSC where most of the existing cores acquisition models are Manufacturer-Oriented Closed-Loop Supply Chain (MOCLSC). The result of this study shows that the retailer will get higher profits when the product returns are acquired through the fixed rate mechanism, rather than the flat rate mechanism. Therefore, determining the optimal amount of cores collected through the fixed rate mechanism will increase the retailer’s profit, as well as joint profit of both parties. From the results, we also point out an interesting note that the retailer should increase efforts to sell new products along with the increasing proportion of consumer Willingness to Pay (WTP) for remanufactured products. Hence, both OEM and retailer profits can be increased consecutively

scholarly journals A Decision Support System for Pricing and Minimizing Product Returns

10.28945/4522 ◽  
2020 ◽  
Author(s):  
Yahel Giat ◽  
Dan Bouhnik
Keyword(s):  
Supply Chain ◽  
Decision Support ◽  
Decision Support System ◽  
Support System ◽  
Future Research ◽  
Pricing Model ◽  
Pricing Models ◽  
Product Returns ◽  
Current Application ◽  
Business Setting

Aim/Purpose: The first goal is to develop a decision support system for pricing and production amounts for a firm facing high levels of product returns. The second goal is to improve the management of the product returns process. Background: A food importer and manufacturer in Israel with a significant product returns rate. Methodology: A decision support module was added to the plant’s information system. The module is based on a supply chain pricing model and uses the sales data to infer future demand’s distribution. Ergonomic models were used to improve the design of the returns warehouse and the handling of the returns. Contribution: The decision support system allows to improve the plant’s pricing and quantity planning. Consequently, it reduced the number of product returns. The new design of the returns process improves worker’s productivity, reduces losses and results in safer outcomes. Findings: The results show the promise of incorporating pricing supply chain models into informing systems to achieve a practical business goal. Recommendations for Practitioners: This work can be replicated for different suppliers, manufacturers and retailers that suffer from product returns. They will benefit from the reduction in returns, as well as the decrease in the losses associated with these returns. Recommendation for Researchers: It is worthwhile to research whether decision support systems can be applied to other aspects of the organizations’ operations. Impact on Society: Product returns is a lose-lose situation for producers, retailers and customers. Moreover, mismanagement of these returns is harmful for the environment and may result in the case of foods, in health hazards. Reducing returns and improving the handling improves sustainability and is beneficial for society. Future Research: The DSS’s underlying pricing model assumes a specific business setting. This can be extended using other pricing models and applying them in a similar fashion to the current application.

scholarly journals Financing Decisions Analysis of E-commerce Supply Chain Finance for Fresh Agricultural Products in China

2021 ◽  
Vol 5 (2) ◽  
pp. 1
Author(s):  
Xian Ning
Keyword(s):  
Supply Chain ◽  
Economic System ◽  
Agricultural Products ◽  
Financing Decisions ◽  
Supply Chain Finance ◽  
The Government ◽  
Difficult Issue

The supply chain finance (SCF) solutions are becoming increasingly diversified with the continuous perfection of the economic system. However, financing for small and medium sized enterprises (SMEs) is still a difficult issue waiting to be solved by enterprises and the government in China. SCF solutions based on e-commerce platforms have developed rapidly in China that provide an alternative for SMEs when few studies have been conducted on e-commerce SCF solutions which focus on fresh agricultural products. Therefore, this research focuses on the SCF solutions applicable to e commerce enterprises of fresh agricultural products.

A Decision Support System and Warehouse Operations Design for Pricing Products and Minimizing Product Returns in a Food Plant

10.28945/4692 ◽  
2021 ◽  
Vol 16 ◽  
pp. 039-054
Author(s):  
Yahel Giat ◽  
Dan Bouhnik
Keyword(s):  
Information System ◽  
Supply Chain ◽  
Decision Support ◽  
Decision Support System ◽  
Support System ◽  
Low Income ◽  
High Rate ◽  
Future Research ◽  
Pricing Model ◽  
Product Returns

Aim/Purpose: The first goal is to develop a decision support system for pricing and production amounts for a firm facing high levels of product returns. The second goal is to improve the management of the product returns process. Background: This study was conducted at a food importer and manufacturer in Israel facing a very high rate of product returns, much of which is eventually discarded. The firm’s products are commonly considered to be a low-cost generic alternative and are therefore popular among low-income families. Methodology: A decision support module was added to the plant’s business information system. The module is based on a supply chain pricing model and uses the sales data to infer future demand’s distribution. Ergonomic models were used to improve the design of the returns warehouse and the handling of the returns. Contribution: The decision support system allows to improve the plant’s pricing and quantity planning. Consequently, it reduced the size of product returns. The new design of the returns process is expected to improve worker’s productivity, reduces losses and results in safer outcomes. This study also demonstrates a successful integration and of a theoretical economical model into an information system. Findings: The results show the promise of incorporating pricing supply chain models into informing systems to achieve a practical business task. We were able to construct actual demand distributions from the data and offer actual pricing recommendations that reduce the number of returns while increasing potential profits. We were able to identify key deficiencies in the returns operations and added a module to the decisions support system that improves the returns management and links it with the sales and pricing modules. Finally, we produced a better warehouse design that supports efficient and ergonomic product returns handling. Recommendations for Practitioners: This work can be replicated for different suppliers, manufacturers and retailers that suffer from product returns. They will benefit from the reduction in returns, as well as the decrease in the losses associated with these returns. Recommendation for Researchers: It is worthwhile to research whether decision support systems can be applied to other aspects of the organizations’ operations. Impact on Society: Product returns is a lose-lose situation for producers, retailers and customers. Moreover, mismanagement of these returns is harmful for the environment and may result in the case of foods, in health hazards. Reducing returns and improving the handling improves sustainability and is beneficial for society. Future Research: The decision support system’s underlying pricing model assumes a specific business setting. This can be extended using other pricing models and applying them in a similar fashion to the current application.

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