Optimal decisions on prices, order quantities, and returns policies in a supply chain with two-period selling

2021 ◽  
Vol 290 (3) ◽  
pp. 1063-1082 ◽  
Author(s):  
Dan Li ◽  
Jing Chen ◽  
Yi Liao
Keyword(s):  
Supply Chain ◽  
Optimal Decisions ◽  
Order Quantities

scholarly journals Research on Closed-Loop Supply Chain Decision-Making in Different Cooperation Modes with Government’s Reward-Penalty Mechanism

2021 ◽  
Vol 13 (11) ◽  
pp. 6425
Author(s):  
Quanxi Li ◽  
Haowei Zhang ◽  
Kailing Liu
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Recycling Rate ◽  
Transfer Payment ◽  
Closed Loop Supply Chain ◽  
Asymmetry Of Information ◽  
Optimal Decisions ◽  
The Government ◽  
The Impact

In closed-loop supply chains (CLSC), manufacturers, retailers, and recyclers perform their duties. Due to the asymmetry of information among enterprises, it is difficult for them to maximize efficiency and profits. To maximize the efficiency and profit of the CLSC, this study establishes five cooperation models of CLSC under the government‘s reward–penalty mechanism. We make decisions on wholesale prices, retail prices, transfer payment prices, and recovery rates relying on the Stackelberg game method and compare the optimal decisions. This paper analyzes the impact of the government reward-penalty mechanism on optimal decisions and how members in CLSC choose partners. We find that the government’s reward-penalty mechanism can effectively increase the recycling rate of used products and the total profit of the closed-loop supply chain. According to the calculation results of the models, under the government’s reward-penalty mechanism, the cooperation can improve the CLSC’s used products recycling capacity and profitability. In a supply chain, the more members participate in the cooperation, the higher profit the CLSC obtain. However, the cooperation mode of all members may lead to monopoly, which is not approved by government and customers.

scholarly journals New Product Presale Strategies considering Consumers’ Loss Aversion in the E-Commerce Supply Chain

2021 ◽  
Vol 2021 ◽  
pp. 1-13
Author(s):  
Chongfeng Lan ◽  
Jianfeng Zhu
Keyword(s):  
Supply Chain ◽  
Correlation Coefficient ◽  
Loss Aversion ◽  
Strategic Behavior ◽  
New Products ◽  
New Product ◽  
Service Level ◽  
Expected Profit ◽  
Risk Averse ◽  
Optimal Decisions

New product presale is a strategic behavior of manufacturers to transfer inventory risks to consumers. The research purpose of this paper is to examine the presale discount, inventory, and service level decisions in an e-commerce supply chain, where the first period is the presale period and the second is the selling period for the new product. First, consumers were divided into two types—those who are risk averse and those who are not. Then, considering different presale discounts applied for new products, three presale strategy models were discussed: no-presale strategy, presale strategy with a moderate discount, and complete presale strategy, and the optimal decisions of e-commerce supply chain members were obtained under different valuations of the new product by consumers. Finally, the effects of the correlation coefficient between the numbers of the two types of consumers, the loss aversion degree of consumers, and the marginal profit in the sales period on the optimal discounted price and the maximum expected profit were analyzed. The conclusions of this article show that the presale strategy is not always optimal but depends on the parameters of the market and the type of consumers. For example, when the correlation coefficient between the two types of consumers is high, it is more profitable for the suppliers if they choose the presale strategy with a moderate discount, while e-commerce platforms tend to adopt the no-presale strategy. The optimal discounted price in the complete presale case is not necessarily lower than that in the moderately discounted presale case. If the marginal profit is high in the normal sales period or consumers are less averse to losses, suppliers are more likely to adopt the complete presale strategy. The research conclusions provide some theoretical reference for companies in the development of new product presale strategies in the e-commerce supply chain.

Fuzzy Multi-Choice Goal Programming for Supplier Selection

2012 ◽  
pp. 39-60 ◽  
Author(s):  
Ching-Ter Chang ◽  
Cheng-Yuan Ku ◽  
Hui-Ping Ho
Keyword(s):  
Supply Chain ◽  
Goal Programming ◽  
Supplier Selection ◽  
Liquid Crystal Display ◽  
Decision Aids ◽  
Decision Makers ◽  
Acrylic Sheet ◽  
Selection Decision ◽  
Order Quantities ◽  
Linguistic Quantifiers

Supplier selection decision is an important issue of purchasing management in supply chain management involving multiple objectives; however, it is difficult to solve because objectives are often conflicting in nature. This study integrates multi-choice goal programming (MCGP) and fuzzy approaches as decision aids to help decision makers to choose better suppliers by considering multiple aspiration levels and vague goal relations. According to the function of multiple aspirations provided by the fuzzy MCGP (FMCGP), decision makers can set fuzzy relations among multiple supplier goals with linguistic quantifiers according to their different strategies. Also, decision makers can define the membership function for each linguistic quantifier to describe their ambiguous selection preference in supplier selection. With the FMCGP method, decision makers can obtain the order quantities for suitable suppliers based on different organizations’ supply chain strategies. To demonstrate the usefulness of the proposed method, a real-world case of a Liquid Crystal Display (LCD) monitor and acrylic sheet manufacturer is presented.

scholarly journals Research on Quality Decisions and Coordination with Reference Effect in Dual-Channel Supply Chain

2020 ◽  
Vol 12 (6) ◽  
pp. 2296 ◽  
Author(s):  
Zhou Xideng ◽  
Xu Bing ◽  
Xie Fei ◽  
Li Yu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Service Quality ◽  
Product Quality ◽  
Cost Sharing ◽  
Supply Chain System ◽  
Optimal Decisions ◽  
Dual Channel ◽  
Reference Quality ◽  
Dual Channel Supply Chain

Although supply quality management has been studied extensively, one important marketing phenomenon, that is, reference effect has been rarely considered in dual-channel supply chain quality management literatures. In fact, the quality reference effect is also an important factor which influences consumer purchasing behavior. We aim to explore the influence of the reference effect on the optimal decisions and performance of a dual-channel supply. Thus, we formulate dynamic models that include the product quality reference effect and the service quality reference effect in a dual-channel supply chain system consisting of a manufacturer and a retailer under the different decision-making scenarios. Utilizing differential game theory, optimal decisions are obtained for the product quality and service quality decision under the different decision-making scenarios. In addition, the optimal decisions and profits are compared, then a service cost-sharing coordinating mechanism is proposed and proven to be effective in the supply chain system. The main results show when the initial reference service quality is low, the consumer service quality reference effect is beneficial to the manufacturer. The spillover effect of service quality is not conducive to the retailer and the manufacturer. When the initial reference product quality is low, both online and offline product quality reference effects are beneficial to the retailer and the manufacturer. The stable (or final) reference quality will not be affected by the initial reference quality. The sum of the two members’ profits under decentralized decision making is less than the total profit of the supply chain under centralized decision making. We design a cost-sharing coordinating mechanism to eliminate the double marginal effect.

scholarly journals A Two-Echelon Agricultural Product Supply Chain with Freshness and Greenness Concerns: A Cost-Sharing Contract Perspective

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-13
Author(s):  
Manyi Tan ◽  
Manli Tu ◽  
Bin Wang ◽  
Tianyue Zou ◽  
Hong Cheng
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Agricultural Products ◽  
Sensitivity Analyses ◽  
Agricultural Product ◽  
Human Beings ◽  
Optimal Decisions ◽  
Game Theoretic ◽  
The Cost ◽  
The Impact

Agricultural products are basic needs of human beings, and whether they are cultivated in a green (or organic) manner has direct impact on environment and public health. This research incorporates product freshness and greenness into a two-echelon agricultural product supply chain (APSC). Game theoretic analyses are carried out to examine pricing, freshness, and greenness decisions of the supply chain members with and without cost-sharing for greenness investment. Subsequently, we conduct comparative and sensitivity analyses for these optimal decisions and profits of the APSC members under different cases. Numerical experiment is employed to investigate the impact of key parameters on equilibrium decisions and profitability. Analytical and experimental results show that the cost-sharing contract of greenness investment for agricultural products helps to strengthen the supply chain members’ effort in improving the greenness and freshness levels of the agricultural product, thereby enhancing both individual and channel profitability of the APSC under certain conditions. This research also reveals a widened profit gap between the producer and the retailer under the cost-sharing contract.

scholarly journals One-Way Substitution Newsboy Problem under Retailer’s Budget Constraint

2020 ◽  
Vol 2020 ◽  
pp. 1-9
Author(s):  
L. L. Zhang ◽  
Y. Yang ◽  
J. Q. Cai
Keyword(s):  
Economic Activity ◽  
Practical Problem ◽  
Numerical Study ◽  
Budget Constraint ◽  
Optimal Order ◽  
Optimal Solutions ◽  
Newsboy Problem ◽  
Optimal Decisions ◽  
Order Quantities ◽  
Demand Scenario

One-way substitution means that when low-end brand goods are sold out, high-end brand goods can be offered to consumers as substitute goods, but not the opposite. In realistic economic activity, “shortage of funds” is a common practical problem for the retailer in making order decision. This paper proposes a nonlinear optimization model with the retailer’s budget to study the optimal order quantities and substitution discount for two one-way substitution products under a stochastic demand scenario, and the objective is to maximize the retailer’s revenue. We solve the model mainly according to the Karush–Kuhn–Tucker (KKT) theorem and present the conditions of optimal decisions. Finally, through the numerical study, we analyze the influence of the budget constraint and other parameters on the optimal solutions.

scholarly journals Optimal Decisions of a Supply Chain With a Risk-Averse Retailer and Portfolio Contracts

IEEE Access ◽  
2019 ◽  
Vol 7 ◽  
pp. 123877-123892 ◽  
Author(s):  
Han Zhao ◽  
Shiji Song ◽  
Yuli Zhang ◽  
Jatinder N. D. Gupta ◽  
Anna G. Devlin
Keyword(s):  
Supply Chain ◽  
Risk Averse ◽  
Optimal Decisions

An Integrated Multi-Objective Decision Model under Considering Stochastic Demand, Price Breaks and Disruption Risk for Order Allocation in a Multiple-Supplier Environment

2011 ◽  
Vol 204-210 ◽  
pp. 387-390
Author(s):  
Wei Pan ◽  
Xian Jia Wang ◽  
Yong Guang Zhong ◽  
Lun Ran
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Raw Materials ◽  
Service Level ◽  
Order Allocation ◽  
Purchasing Cost ◽  
Multi Objective ◽  
Disruption Risk ◽  
Order Quantities ◽  
Risk Cost

The objective of this article is to study the order allocation problems in a stochastic supply chain. This supply chain consists of a company that can order raw materials from multiple suppliers. At any time of a supply order, decisions have to be made by the company concerning the respective supplier order quantities and price breaks, so that the total purchasing cost and disruption risk cost are minimized, while maintaining a specified service level and quality. For this purpose, we have developed an integrated multi-objective decision model under random constraint to supply order allocation.

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