scholarly journals Risk-Averse Suppliers’ Optimal Pricing Strategies in a Two-Stage Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-11 ◽  
Author(s):  
Rui Shen ◽  
Zhiqing Meng ◽  
Xinsheng Xu ◽  
Min Jiang
Keyword(s):  
Supply Chain ◽  
Loss Function ◽  
Wholesale Price ◽  
Competitive Environment ◽  
Optimal Pricing ◽  
Risk Averse ◽  
Pricing Strategies ◽  
Two Stage ◽  
Future Loss

Risk-averse suppliers’ optimal pricing strategies in two-stage supply chains under competitive environment are discussed. The suppliers in this paper focus more on losses as compared to profits, and they care their long-term relationship with their customers. We introduce for the suppliers a loss function, which covers both current loss and future loss. The optimal wholesale price is solved under situations of risk neutral, risk averse, and a combination of minimizing loss and controlling risk, respectively. Besides, some properties of and relations among these optimal wholesale prices are given as well. A numerical example is given to illustrate the performance of the proposed method.

PRICING DECISIONS FOR A CLOSED-LOOP SUPPLY CHAIN IN A FUZZY ENVIRONMENT

2012 ◽  
Vol 29 (01) ◽  
pp. 1240003 ◽  
Author(s):  
JIE WEI ◽  
JING ZHAO ◽  
YONGJIAN LI
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Retail Price ◽  
Economic Behavior ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Closed Loop Supply Chain ◽  
Pricing Decisions ◽  
Fuzzy Environment

This paper studies pricing problem for a closed-loop supply chain consisting of a manufacturer and a retailer in a fuzzy environment. The purpose of this paper is to explore how the manufacturer makes his decisions about wholesale price and transfer price and how the retailer makes her decisions about retail price and collecting price in the expected value standard. Each firm's optimal pricing strategies are established by using game theory under the centralized and decentralized decision cases, respectively. Managerial insights into the economic behavior of firms are also investigated, which can serve as the basis for empirical study in the future. Moreover, we analyze numerically the results and give some insights on the influence of some parameters.

PRICING AND INVENTORY STRATEGIES FOR A TWO-STAGE DUAL-CHANNEL SUPPLY CHAIN

2012 ◽  
Vol 29 (01) ◽  
pp. 1240004 ◽  
Author(s):  
RUN H. NIU ◽  
XUAN ZHAO ◽  
IGNACIO CASTILLO ◽  
TARJA JORO
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Product Line ◽  
Two Stage ◽  
Web Based ◽  
Dual Channel ◽  
Eoq Model ◽  
Joint Pricing ◽  
Dual Channel Supply Chain ◽  
Offline Channels

The Internet is becoming increasingly important as a sales channel. Thus, most large retail firms have adopted a multi-channel strategy that includes both web-based channels and pre-existing offline channels. In this paper, we consider joint pricing and inventory/production decision problems for members in a monopoly two-stage dual-channel retailer supply chain. For a dual-channel retailer, pricing in one channel will affect the demand in the other channel. This subsequently affects the retailer's replenishment (ordering) decisions, which have an impact on the producer's inventory/production plans and wholesale price decisions. It is clear then that pricing decisions and inventory/production decisions are interacting in each member of the supply chain and among the members in the chain as well. In this paper, we analyze joint pricing and inventory/production problems under three scenarios by incorporating intra-product line price interaction in the EOQ model. We show that a unique equilibrium exists under certain realistic conditions. We also provide numerical results that offer insights for pricing strategies for the dual-channel retailer supply chain and for product design for different channels.

scholarly journals Optimal Pricing Strategies in a Product and Service Supply Chain with Extended Warranty Service Competition considering Retailer Fairness Concern

2019 ◽  
Vol 2019 ◽  
pp. 1-15 ◽  
Author(s):  
Du Zhao ◽  
Xumei Zhang ◽  
Tinghai Ren ◽  
Hongyong Fu
Keyword(s):  
Supply Chain ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Price Difference ◽  
Extended Warranty ◽  
Service Supply Chain ◽  
Reasonable Range ◽  
Fairness Concerns ◽  
Extended Warranties ◽  
Warranty Service

This paper examines optimal pricing in a two-tier product and service supply chain consisting of a manufacturer and a retailer in the context of vertical competition in extended warranty in two cases: one considering the retailer’s fairness concerns and one without considering the retailer’s fairness concerns. A manufacturer-dominated product and service supply chain game-theoretic model on the Stackelberg model is developed to analyse how the level of vertical competition in extended warranty service and the intensity of a retailer’s fairness concerns influence the optimal pricing of products and extended warranties for the manufacturer and retailer. This study finds the following: (i) Two parties of the supply chain employ differential pricing strategies for extended warranties when the retailer has fairness concerns. (ii) Compared to the same pricing strategies for extended warranty service when the retailer has no fairness concerns, the increase of competition intensity of vertical extended warranty service will enlarge the price difference of extended warranty service. Meanwhile, it is the intensity of fairness concerns that determines the influences of retailer’s fairness concerns on the price difference of extended warranties. (iii) If no fairness concerns are raised, an increase in the level of vertical competition in extended warranty service would benefit both supply chain parties, rather than hurting their profit. If the retailer is fair-minded, its fairness utility increases when the intensity of the fairness concerns rises in a reasonable range and decreases when the intensity exceeds the reasonable range, but for the manufacturer, its profits will be damaged as long as the retailer raises fairness concerns.

scholarly journals Incentive Mechanism for Sustainable Improvement in a Supply Chain

2019 ◽  
Vol 11 (13) ◽  
pp. 3508 ◽  
Author(s):  
EuiBeom Jeong ◽  
GeunWan Park ◽  
Seung Ho Yoo
Keyword(s):  
Supply Chain ◽  
Environmental Quality ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Optimal Solution ◽  
Incentive Contract ◽  
Sustainable Improvement ◽  
Profit Performance

In this study, we consider the issue of sustainable development in the supply chain consisting of an original equipment manufacturer (OEM) and a contract manufacturer (CM). We investigate how to facilitate the CM’s investment in the environmental quality of a product so as to properly respond to climate change. We introduce a quantity incentive contract, and obtain the optimal solution based on a Stackelberg game. The OEM, as the focal company, determines the level of the incentive, and the CM, responsible for product design and production, determines its level of environmental quality given the OEM’s incentive offer. To investigate the effectiveness of the quantity incentive contract and provide important implications, we analytically compare the quantity incentive contract with the basic wholesale price contract without any incentives and conduct numerical experiments. Our results reveal that the quantity incentive contract facilitates the CM’s investment in environmental quality, and enhances the environmental, market, and profit performance of not only the CM but also the OEM which pays the incentive. We also show that the quantity incentive contract is suitable to develop a long-term relationship between the OEM and the CM.

Study and Simulation on Dynamics of a Risk-Averse Supply Chain Pricing Model with Dual-Channel and Incomplete Information

2016 ◽  
Vol 26 (09) ◽  
pp. 1650146 ◽  
Author(s):  
Lijian Sun ◽  
Junhai Ma
Keyword(s):  
Supply Chain ◽  
Incomplete Information ◽  
Dynamic Pricing ◽  
Wholesale Price ◽  
Price Adjustment ◽  
Phase Portraits ◽  
Largest Lyapunov Exponent ◽  
Risk Averse ◽  
Dual Channel ◽  
Adjustment Speed

Under the industrial background of dual-channel, volatility in demand of consumers, we use the theory of bifurcations and numerical simulation tools to investigate the dynamic pricing game in a dual-channel supply chain with risk-averse behavior and incomplete information. Due to volatility of demand of consumers, we consider all the players in the supply chain are risk-averse. We assume there exist Bertrand game and Manufacturers’ Stackelberg in the chain which are closer to reality. The main objective of the paper is to investigate the complex influence of the decision parameters such as wholesale price adjustment speed, risk preference and service value on stability of the risk-averse supply chain and average utilities of all the players. We lay emphasis on the influence of chaos on average utilities of all the players which did not appear in previous studies. The dynamic phenomena, such as the bifurcation, chaos and sensitivity to initial values are analyzed by 2D bifurcation phase portraits, Double Largest Lyapunov exponent, basins of attraction and so on. The study shows that the manufacturers should slow down their wholesale price adjustment speed to get more utilities, if the manufacturers are willing to take on more risk, they will get more profits, but they must keep their wholesale prices in a certain range in order to maintain the market stability.

scholarly journals The Impact of Price Comparison Service on Pricing Strategy in a Dual-Channel Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-13 ◽  
Author(s):  
Qi Xu ◽  
Zheng Liu ◽  
Bin Shen
Keyword(s):  
Supply Chain ◽  
Numerical Study ◽  
Profit Maximization ◽  
Pricing Strategy ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Price Comparison ◽  
Dual Channel ◽  
Dual Channel Supply Chain ◽  
The Impact

Recently, price comparison service (PCS) websites are more and more popular due to its features in facilitating transparent price and promoting rational purchase decision. Motivated by the industrial practices, in this study, we examine the pricing strategies of retailers and supplier in a dual-channel supply chain influenced by the signals of PCS. We categorize and discuss three situations according to the signal availability of PCS, under which the optimal pricing strategies are derived. Finally, we conduct a numerical study and find that in fact the retailers and supplier are all more willing to avoid the existence of PCS with the objective of profit maximization. When both of retailers are affected by the PCS, the supplier is more willing to reduce the availability of price information. Important managerial insights are discussed.

scholarly journals Research on the Maritime Logistics Pricing Model of Risk-Averse Retailer-Dominated Dual-Channel Supply Chain

2018 ◽  
Vol 25 (s2) ◽  
pp. 107-116
Author(s):  
Qing Fang ◽  
Zeping Tong ◽  
Liang Ren ◽  
Ao Liu
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Wholesale Price ◽  
Risk Averse ◽  
Market Demand ◽  
Maritime Logistics ◽  
Decentralized Supply Chain ◽  
Dual Channel ◽  
On Line ◽  
Dual Channel Supply Chain

Abstract Price decision is studied in a risk-averse retailer-dominated dual-channel supply chain, which consisting of one manufacturers and one retailer with both off-line and on-line channels. Firstly, two mean-variance models in centralized and decentralized supply chain are established. Secondly, the optimal solutions under the two decision modes are compared and analyzed. The results shows that the price of dual-channel of retailer decreased with the increase of retailers’ risk- aversion coefficient and the standard deviation of the fluctuation of market demand, while the wholesale price changes is on the contrary; in addition, when the market demand is greater than a certain value, the prices of dual channel are correspondingly higher in decentralized supply chain than in centralized supply chain, and vice versa. In addition, when the retailer’s risk aversion is in a certain interval, the expected utility of the whole supply chain is greater in centralized supply chain than in decentralized decision, and vice versa. Finally, a numerical example is given to verify the above conclusions.

scholarly journals Inter-organizational contract control of advertising strategies in the supply chain

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Yafei Zu
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Dynamic Effect ◽  
Sensitivity Analyses ◽  
Pricing Strategies ◽  
Stackelberg Differential Game ◽  
Contract Choice ◽  
Advertising Effort ◽  
Advertising Strategies ◽  
Contract Selection

<p style='text-indent:20px;'>Advertising has a crucial impact on a product's goodwill. To further improve a product's goodwill and make more profit, member firms in the supply chain use various contracts to coordinate the channel. Considering the dynamic effect of advertising, this paper studies a two-level supply chain consisting of one manufacturer and one retailer. The two members focus on maximizing their profits through advertising and pricing strategies under two types of contracts: the wholesale price contract and the consignment contract. The Stackelberg differential game is introduced, and the optimal advertising effort, wholesale and retail pricing strategies in the two situations are studied. Numerical examples and sensitivity analyses are conducted to explore the models further. The results show that the retailer's revenue proportion and the product's goodwill according to consumers significantly affect the strategies and the contract choice of the partner firms in the supply chain. A proportion of too high or too low revenue may lead to a contract selection conflict between the two partner firms. However, when consumers care more about the product's goodwill, this contract selection conflict can be weakened.</p>

scholarly journals lnternational transfer pricing strategies for minimizing global income taxes

1997 ◽  
Vol 37 (2) ◽  
pp. 68-75 ◽  
Author(s):  
Stephen T. Limberg ◽  
John R. Robinson ◽  
Raimundo L.M. Christians
Keyword(s):  
Income Tax ◽  
Transfer Pricing ◽  
International Markets ◽  
Income Taxes ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Forthcoming Article ◽  
Term Survival ◽  
Optimal Tax

Optimal financiai strategies are criticai for long term survival in competitive international markets. Financial strategies pertaining to transfer pricing have become increasingly important as income tax authorities seek additional revenues through increased monitoring of company practices. In this first of two articles, optimal tax strategies are presented after reviewing the transfer pricing concept and the rationale underlying governments' increased focus on transfer pricing. In the second forthcoming article, we analyze the effect of government restrictions on optimal pricing strategies.

Sign in / Sign up

Export Citation Format

Share Document