scholarly journals Supply Chain Contracts in Fashion Department Stores: Coordination and Risk Analysis

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Bin Shen ◽  
Pui-Sze Chow ◽  
Tsan-Ming Choi
Keyword(s):  
Supply Chain ◽  
Brand Management ◽  
Absolute Risk ◽  
Profit Sharing ◽  
Private Label ◽  
Fashion Industry ◽  
Department Stores ◽  
National Brand ◽  
Supply Chain System ◽  
The Impact

In the fashion industry, department stores normally trade with suppliers of national brands by markdown contract whilst developing private labels with cooperated designers by profit sharing contract. Motivated by this real industrial practice, we study a single-supplier single-retailer two-echelon fashion supply chain selling a short-life fashion product of either a national brand or a private label. The supplier refers to the national/designer brand owner and the retailer refers to the department store. We investigate the supply chain coordination issue and examine the supply chain agents’ performances under the mentioned two contracts. We find the analytical evidence that there is a similar relative risk performance but different absolute risk performances between the national brand and the private label. This finding provides an important implication in strategic interaction for the risk-averse department stores in product assortment and brand management. Furthermore, we explore the impact of sales effort on the supply chain system and find that the supply chain is able to achieve coordination if and only if the supplier (i.e., the national brand or the private label) is willing to share the cost of the sales effort.

Impact of In-Store Promotion and Spillover Effect on Private Label Introduction

2019 ◽  
Vol 11 (2) ◽  
pp. 96-112 ◽  
Author(s):  
Yingjue Zhou ◽  
Tieming Liu ◽  
Gangshu Cai
Keyword(s):  
Supply Chain ◽  
Spillover Effect ◽  
The Other ◽  
Private Label ◽  
National Brand ◽  
Label Product ◽  
Horizontal Competition ◽  
Positive Spillover ◽  
The Impact ◽  
Brand Product

In this paper, the authors investigate the impact of in-store promotion and its spillover effect on private label introductions. Studying different retail supply chain scenarios in which the retailer carrying a national brand may introduce its own private label product and promote either the national brand or the private label inside the store, they find the in-store promotion on one product has a positive spillover effect on the other product. Without in-store promotion and spillover effect, the conventional wisdom indicates that, in a retail supply chain, the national brand manufacturer will be negatively affected by the introduction of a private label product. With in-store promotion and spillover effect, however, the national brand manufacturer can actually benefit from the private label introduction. When the spillover from national brand to private label is high, the retailer prefers to promote the national brand product. When the spillover from private label to national brand is high, promoting the private label product can also benefit the national brand manufacturer. With a symmetric spillover rate, the national brand manufacturer can still benefit from the private label introduction, as long as the retailer promotes the national brand product, the horizontal competition is not intense, or the private label product quality is sufficiently low.

scholarly journals Optimization and Coordination of Crowdsourcing Supply Chain in Fast Fashion Industry

2018 ◽  
Vol 2018 ◽  
pp. 1-16 ◽  
Author(s):  
Jizi Li ◽  
Chunling Liu ◽  
Xianyi Zeng ◽  
Nian Zhang
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Profit Sharing ◽  
Risk Level ◽  
Fashion Industry ◽  
Supply Chain System ◽  
Fast Fashion ◽  
Incentive Policy ◽  
Sharing Scheme ◽  
Production Quantity

Due to inadequate designers in fast fashion industry and the development of the Internet, small-and-medium-sized garment makers have gradually turned to external talents to enhance their new product design efficiency via crowdsourcing initiative. This paper presents a new framework of crowdsourcing supply chain for fast fashion industry. First, a basic multiperiod order model is established in a crowdsourcing supply chain system, where a garment maker chooses the best one among available solutions submitted by online designers (i.e., crowdsources) in each period, then transforms it into finished product, and sells to consumers through a retailer. Second, we extend this model by integrating the factors of capital turnover, the retailer’s risk-aversion, and the garment maker’s minimum production quantity. Moreover, utilizing wholesale price, buyback, and profit-sharing scheme designs a mixed contract for coordinating crowdsourcees, retailer, and garment maker of crowdsourcing supply chain for achieving Pareto optimality. The models help the garment maker determining the optimal production quantities of crowdsourcing designed products and enable the retailer placing the optimum orders and setting the reasonable risk level. In addition, we also find that the incentive policy for crowdsourcing designers can be fulfilled by using a profit-sharing scheme with a piecewise function of order quantity instead of a linear function.

scholarly journals Pricing strategy of closed-loop supply chain under disruptions

Filomat ◽  
2016 ◽  
Vol 30 (15) ◽  
pp. 4059-4072 ◽  
Author(s):  
Xiaofeng Xu ◽  
Jiaguo Liu ◽  
Yongli Li ◽  
Xuelong Zhou
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Supply And Demand ◽  
Profit Sharing ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Depth Study ◽  
Contract Costs ◽  
The Impact

The aim of this paper is to understand how disruptions effect on closed-loop supply chain, and how to achieve the coordination of closed-loop supply chain under disruptions situation for the whole supply chain system. Design/methodology/approach- This paper analyzed the effect caused by the disruptions of the closed-loop supply chain from both supply and demand , and applied the established margin profits sharing contract to achieve coordination under the disruptions. Findings- From both supply side and demand side, it drew how the disruptions affect the closed-loop supply chain. When the disruptions have less effect on the forward and reverse cost of closed-loop supply chain, the impact of the closed-loop supply chain is controllable; when the disruptions have lager effect on the forward and reverse cost of closed-loop supply chain, the impact of the closed-loop supply chain is uncontrollable. Research limitations/implications- In this paper, the contract costs are ignored for zero. While in actual situation, to maintain the efficient implementation of this contract must spend considerable cost. Sometimes the cost may be too high to become hinder between manufacturers and retailers. This paper also does not make in-depth study on this issue, so it will be further study in the future. Originality/value- This paper also designed a set of differential profit sharing contract based on revenue sharing contract mechanism. The contract is easy to be managed, easy to be operated, making the closed-loop supply chain system can achieve coordination whether in steady state or under disruptions.

scholarly journals Dynamic Adjustment Mechanism and Differential Game Model Construction of Mask Emergency Supply Chain Cooperation Based on COVID-19 Outbreak

2021 ◽  
Vol 13 (3) ◽  
pp. 1115
Author(s):  
Shufan Zhu ◽  
Kefan Xie ◽  
Ping Gui
Keyword(s):  
Supply Chain ◽  
Differential Game ◽  
Production Technology ◽  
Wholesale Price ◽  
Transfer Payment ◽  
Dynamic Adjustment ◽  
Supply Chain System ◽  
Government Subsidies ◽  
Technology Investment ◽  
The Impact

Incorporating the impact of the COVID-19 pandemic on the mask supply chain into our framework and taking mask output as a state variable, our study introduces the differential game to study the long-term dynamic cooperation of a two-echelon supply chain composed of the supplier and the manufacturer under government subsidies. The study elaborates that government subsidies can provide more effective incentives for supply chain members to cooperate in the production of masks compared with the situation of no government subsidies. A relatively low wholesale price can effectively increase the profits of supply chain members and the supply chain system. The joint contract of two-way cost-sharing contract and transfer payment contract can promote production technology investment efforts of the supply chain members, the optimum trajectory of mask production, and total profit to reach the best state as the centralized decision scenario within a certain range. Meanwhile, it is determined that the profits of supply chain members in the joint contract can be Pareto improvement compared with decentralized decision scenario. With the increase of production technology investment cost coefficients and output self-decay rate, mask outputs have shown a downward trend in the joint contract decision model. On the contrary, mask outputs would rise with growing sensitivity of mask output to production technology investment effort and increasing sensitivity of mask demand to mask output.

scholarly journals Simulation of marine vehicles operation in the state of wind and wave conditions

2021 ◽  
pp. 191-199
Author(s):  
А.А. Карпенко
Keyword(s):  
Supply Chain ◽  
Simulation Model ◽  
Transport System ◽  
Wind Wave ◽  
Supply Chain System ◽  
Chain System ◽  
Marine Vehicles ◽  
Marine Transport ◽  
The Impact ◽  
The City

Эксплуатация морского транспорта подвержена влиянию множества факторов, учет которого требует высокой трудоемкости. Как правило, моделирование морских транспортных систем, выступающих в роли связующего звена различных экономических процессов, производится на стадии предпроектной разработки. На этой стадии, помимо прочего, необходимо оценить влияние на проектируемую систему не только детерминированных, но и стохастических процессов. В данной работе описан алгоритм учета влияния ветро-волновых режимов морских участков на эксплуатацию морских транспортных судов. Данный алгоритм реализован на примере модели системы поставок сжиженного природного газа (СПГ) морским транспортом потребителям г. Мурманск. Научной новизной данной работы является комплексный подход к логико-математическому описанию эксплуатации морских транспортных средств. Этот подход включает в себя моделирование эксплуатации судна на базе агентного подхода, моделирование ветро-волновых режимов на основе анализа временных рядов и стохастических экспериментов и определение скорости движения судна на основе эмпирико-статистических формул расчета скорости судна и теории гидродинамики судна. В ходе выполнения данной работы была построена имитационная модель поставок СПГ в г. Мурманск морским транспортом. Результаты прогонов этой модели были верифицированы на основе технико-экономического обоснования АО «ЦНИИМФ». Алгоритм построения имитационной модели, описанный в данной работе, может быть применен для имитационного моделирования морских транспортных систем с различными целями функционирования. Marine transport operation is affected by a lot of factors taking into account of which requires a high laboriousness. In most cases modelling of marine transport operation as a link in various economic processes is performed at the pre-design development stage. By the way, evaluation of the impact of both deterministic and stochastic processes on the designed system is necessary at this stage. Evaluation of transport system efficiency based on pre-formed system of criteria is in progress at this stage. This paper describes an algorithm for modeling the operation of marine vessels taking into account wind-wave regime of sea areas. This algorithm is implemented by the model of liquified natural gas (LNG) supply chain system by marine transport to consumers of the city of Murmansk. Scientific novelty of this paper is a complex approach to logical-mathematical description of marine vehicles exploitation. This approach consists of agent-based simulation of vessel exploitation, modelling of wind-wave regimes by means of time series analysis and stochastic modelling and the speed determination of the vessel movement based on the empirical-statistical formulas for calculating the speed of the vessel and the theory of vessel hydrodynamics. During this research simulation model LNG supply chain system by marine transport to consumers of the city of Murmansk was developed. The results of the model have been verified by the feasibility study performed by CNIIMF JSC. The algorithm for constructing simulation model described in this paper could be implemented in modelling of marine transport system for various purposes.

scholarly journals CONTEMPORARY MANAGEMENT OF BUSINESS PROCESSES WITHIN THE SUPPLY CHAIN OF FASHION INDUSTRY

2020 ◽  
pp. 36-39
Author(s):  
Andrea Dobrosavljević ◽  
Snežana Urošević
Keyword(s):  
Supply Chain ◽  
Business Process ◽  
Business Process Management ◽  
Process Management ◽  
Business Processes ◽  
Demand Management ◽  
Relationship Management ◽  
Customer Relationship ◽  
Fashion Industry ◽  
The Impact

Business processes are present in all types of organizations, regardless of the size or industry within which the organization operates. Successful business process management (BPM) is an indicator of the level of process maturity of the organization. Within the supply chain, it is possible to observe the presence of business processes of a collaborative nature, as BPM relies on the principles of partnership, development, and exchange of information through links that exist within this chain between all actors [1]. Within this paper, BPM in the relations with suppliers and consumers within the supply chain of organizations operating in the fashion industry is considered. Lambert [2] lists eight macro processes that take place in the supply chain, between suppliers, manufacturers, distributors, retailers and end consumers, as follows: customer relationship management, supplier relationship management, demand management, order execution, fl ow management production, product development and commercialization and return management. Within this paper, a research is presented which analyzes the segments of managing collaborative business processes within the supply chain of the fashion industry, based on the responses of 508 managers and employees in the fashion industry in the Republic of Serbia. The needs for the development of certain segments in accordance with the needs of modern business process management have been explored.Scientifi c novelty. The research part of this paper relies on the application of Friedman's test which enables the analysis of the current state of BPM in relations with suppliers and consumers within the supply chain of the fashion industry, expressed through workers' responses with a ranking of their preferences. This paper contributes to the creation of a knowledge base within the research in the fi eld of the impact of BPM on improvements in the supply chain, on the basis of which it is possible to conduct further research and upgrade knowledge.Practical value. The fi ndings derived from the results of research of this type contribute to the development of the business from various aspects. The benefi ts can be refl ected not only through the strengthening of the competitive position but also through the sustainability of business on the basis of adequate application of BPM practices in all business segments. Accordingly, in addition to the scientifi c novelty, which is refl ected in the results of the rese arch work, there is a practical novelty, which is refl ected in the guidelines for the development of modern BPM within the supply chain of the fashion industry.

scholarly journals Private Label and Macroeconomic Indicators: Europe and USA

2020 ◽  
Vol 10 (4) ◽  
pp. 91
Author(s):  
Eloy Gil-Cordero ◽  
Francisco Javier Rondán-Cataluña ◽  
Daniel Sigüenza-Morales
Keyword(s):  
Market Share ◽  
European Countries ◽  
Private Label ◽  
Private Labels ◽  
National Brand ◽  
Business Decisions ◽  
The Us ◽  
Macroeconomic Indicators ◽  
The Usa ◽  
The Impact

In this study, we have analyzed the impact and evolution of some of the most important macroeconomic indices on the market share and value of private brands. The originality and objective of this work is the linkage of macroeconomic variables in European countries and the USA with the evolution of private labels in these countries. A sample of 19 European countries and all states within the USA has been collected over a 10-year period, including data on private labels and macroeconomic indices. The analysis of the panel data has been applied using the SPSS software through the Ljung–Box test. The most significant data from the sample study is that for GDP; we advised national brand managers to make a special communication effort in nations that offer a lower GDP within Europe for their volume and in value for the US. On the other hand, it was found that when the unemployment rate increases, the value of private label market share decreases for the US, but increases for Europe, in addition to other findings that will help organizations make different business decisions.

scholarly journals Decision Analysis of Advertising and Price for Bilateral Competing Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-7
Author(s):  
Cheng-Tang Zhang ◽  
Shan-Lin Yang
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Prisoner's Dilemma ◽  
Prisoner’S Dilemma ◽  
Decision Models ◽  
Competition Intensity ◽  
Supply Chain System ◽  
Investment Level ◽  
First Mover Advantage ◽  
The Impact

The outcome of centralized equilibrium, prisoner's dilemma equilibrium, and decentralized equilibrium under different decision models has been provided with regards to bilateral competing supply chain system, either side of which is composed of one manufacturer and one retailer. Theoretical analysis indicates a positive correlation between price and one's own advertising investment level and a negative correlation between price and the opponent's advertising investment level. Through analysis of numerical examples, the results reveal a first mover advantage that leads to prisoner's dilemma in the system as well as the impact that price and advertising competition intensity has on the supply chain's choice of decision model.

scholarly journals Decision Optimization and Interest Coordination of Dual-Channel Supply Chain Embedded by Two-Echelon Logistics Service Providers under the Dominance of Retailer

2020 ◽  
Vol 2020 ◽  
pp. 1-22
Author(s):  
Jianjun Zhang ◽  
Daning Xing
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Service Providers ◽  
Sensitivity Coefficient ◽  
Service Level ◽  
Profit Sharing ◽  
Decision Makers ◽  
Coordination Mechanism ◽  
Supply Chain System ◽  
Decentralized Decision Making

Taking the dual-channel supply chain embedded by two-echelon logistics service providers as the research object, this paper studies the optimal decisions of each decision maker under the centralized and decentralized decision-making mode led by the retailer. Based on the decentralized decision-making mode, an improved coordination mechanism of residual profit sharing is designed to realize the interest coordination, in which the bargaining power of all participants is fully considered. The results show that, under the decentralized decision-making mode, the profit of FLSP increases first and then decreases as the sensitivity coefficient of cross-service level increases, while the profits of other decision makers and the supply chain system decrease with the increase of sensitivity coefficient of cross-service level. The relative size of the price sensitivity coefficient of online and offline channel has an inconsistent impact on the profit of FLSP, while it has a consistent impact on the profits of other decision makers. The profit of FLSP fluctuates greatly with changes in the sensitivity coefficient, and it is difficult to be guaranteed in the entire supply chain system. On this basis, an improved coordination mechanism of residual profit sharing is designed. The results show that, after the introduction of bargaining power coefficient of the Nash negotiation model, the variation coefficient of the profits of all decision makers is smaller after coordination, and the profit growth rates are more uniform.

A Multi-Retailer Decentralized Supply Chain Coordination Based on Revenue-Sharing Contracts

2014 ◽  
Vol 668-669 ◽  
pp. 1587-1590
Author(s):  
Jin Yu Ren ◽  
Yong Xian Liu ◽  
Peng Fei Zeng
Keyword(s):  
Supply Chain ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Profit Sharing ◽  
Optimal Solutions ◽  
Supply Chain System ◽  
Chain System ◽  
Numerical Example ◽  
Coordination Model ◽  
Decentralized Supply Chain

To a decentralized supply chain system consisting of a manufacturer and multiple independent retailers, the game models about the decentralized solution and centralized solution are developed. Comparison of the optimal solutions to two models reveals that the supply chain needs coordination. Then a coordination model on the revenue-sharing contracts is introduced. Finally, a numerical example shows that the perfect supply chain coordination and the flexible allocation of the profit can be achieved when a complementary profit-sharing agreement is included.

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