scholarly journals Strategic Wholesale Pricing and Commonality Strategy in a Supply Chain with Quality Segmentation

2015 ◽  
Vol 2015 ◽  
pp. 1-13 ◽  
Author(s):  
Tiantian Xu ◽  
Tiaojun Xiao ◽  
Chen Tian
Keyword(s):  
Supply Chain ◽  
Production Cost ◽  
Wholesale Price ◽  
High Quality ◽  
Unit Production Cost ◽  
Pricing Decision ◽  
First Mover Advantage ◽  
The Common ◽  
Wholesale Pricing

We develop two game models of a one-supplier and one-manufacturer supply chain to investigate the supplier’s strategic wholesale pricing decision and the manufacturer’s commonality strategy. The manufacturer has three commonality strategies for the high-end and low-end products: common high-quality component, common low-quality component, and dedicated components. We consider both wholesale price first scenario and commonality strategy first scenario. Under the wholesale price first scenario, we identify the range of each commonality strategy and find that (i) the common low-quality component strategy is harmful to the supplier; (ii) if the quality of low-quality component and the unit production cost of high-quality component are sufficiently low, the supplier induces the common high-quality component strategy by strategically decreasing the unit wholesale price of high-quality component, while if they are sufficiently high, the supplier induces the dedicated components strategy by increasing the unit wholesale price of high-quality component and decreasing that of low-quality one. Under the commonality strategy first scenario, the common low-quality component strategy may exist. By comparing the two scenarios, we find that (i) if the unit production cost of low-quality component is medium, the equilibrium outcomes under both scenarios are identical; (ii) there exists a first-mover advantage for the two players.

scholarly journals An Integrated Supplier-Buyer Inventory Model with Conditionally Free Shipment under Permissible Delay in Payments

2010 ◽  
Vol 2010 ◽  
pp. 1-20 ◽  
Author(s):  
Chia-Hsien Su
Keyword(s):  
Supply Chain ◽  
Production Rate ◽  
Production Cost ◽  
Positive Impact ◽  
Wholesale Price ◽  
Chain Model ◽  
Selling Price ◽  
Market Demand ◽  
Unit Production Cost ◽  
Minimum Requirement

It is well known that production, distribution, marketing, inventory control, and financing all/each have a positive impact on the performance of a supply chain. Despite the growing interest in the development of integrated inventory models, the interactions between these elements of a supply chain may not be efficiently included, resulting in a restricted supply chain model presentation. To incorporate this phenomenon, a mathematical model that tackles the interdependent relationships between these aforementioned elements is developed in this paper. This study considers the determination of the optimal pricing, ordering, and delivery policies of a profit-maximizing supply chain system, faced with (1) unit wholesale price of the supplier is set based on unit production cost, (2) unit production cost is taken as a function of demand rate and production rate, (3) the supplier's production rate is adjusted according to market demand, (4) market demand depends upon buyer's selling price, (5) a free freight is offered if the buyer's order exceeds a certain minimum requirement, and (6) a constant credit period is offered by the supplier to stimulate the demand of the buyer. Algorithm for computing the optimal policies is derived. The sensitivity of the optimal results with respect to those parameters which directly influence the production and transportation costs is also examined.

Implications of Price Matching in Supply Chain Negotiation

2021 ◽  
Author(s):  
Weixin Shang ◽  
Gangshu (George) Cai
Keyword(s):  
Supply Chain ◽  
Social Welfare ◽  
Wholesale Price ◽  
Consumer Welfare ◽  
Problem Definition ◽  
Nash Bargaining ◽  
Price Matching ◽  
The Impact ◽  
Multiple Buyers ◽  
Wholesale Pricing

Problem definition: Few papers have explored the impact of price matching negotiation (PM), in which a channel matches its price with the resulting wholesale price bargained by another channel, on firms’ performances, consumer welfare, and social welfare, with and without supply chain coordination. Academic/practical relevance: Negotiation has been widely seen in determining both uniform and discriminatory wholesale prices, which affect outcomes of competitive supply chain practices. Methodology: To characterize the PM mechanism, we use game theory and Nash bargaining theory to compare PM with simultaneous negotiation (SN) through a common-seller two-buyer differentiated Bertrand competition model. Results: Our analysis reveals that PM can benefit the seller but hurt all buyers, which is at odds with some fair wholesale pricing clauses intending to protect buyers. Under coordination with side payments, however, all firms can conditionally benefit more from PM than from SN. Despite firms’ gains, PM leads to less consumer utility and social welfare compared with SN, unless the second buyer in PM is considerably less powerful than the first buyer. Coordination further worsens PM’s negative impact on consumer utility and social welfare. Moreover, the existence of a spot market can increase the wholesale price in PM, hurting buyers, consumers, and society. Furthermore, the qualitative results about PM remain robust under an alternative disagreement point for PM, multiple buyers, and other extensions. Managerial implications: This paper delivers insights on when price matching in supply chain wholesale price negotiation can benefit a seller, buyers, consumers, and society in a variety of scenarios. It advocates how managers can use PM to their own advantages and provides rationale to decision makers for policy regulations regarding wholesale pricing.

scholarly journals Using a Modified SERVQUAL Approach to Assess the Quality of Supply Chain Services in Greek Online Supermarkets

Logistics ◽  
2021 ◽  
Vol 5 (4) ◽  
pp. 69
Author(s):  
Anastasia D. Mitropoulou ◽  
Giannis T. Tsoulfas
Keyword(s):  
Supply Chain ◽  
Substantial Improvement ◽  
High Quality ◽  
Customer Expectations ◽  
Turbulent Times ◽  
Logistics Services ◽  
Quality Of Supply ◽  
Online Shops ◽  
Channel Structures

Background: The purpose of this paper is to study customer satisfaction concerning orders from online supermarkets, which have recently boomed to fulfil the increased needs of customers during the COVID-19 pandemic. The service quality, as well as aspects of the logistics efficiency, are being examined, and the gaps between the expectations of people using these services and their perceptions about the received services are being evaluated. Methods: A modified approach of the well-known model SERVQUAL is suggested and used in the case of Greek online supermarkets. Thus, an initial contribution of this paper is the formulation of a framework which can be used to assess the quality of B2C logistics services. Results: The results show that customers’ expectations are exceeding their experiential perceptions in all the examined fields, and therefore there is room for substantial improvement. The study identified areas in which supermarkets’ online shops are close to meeting customer expectations and areas in which they fall far short. Conclusions: Competition is expected to become more intense and efficient supply chains that provide services of high quality will have a determinant role to play. Moreover, online supermarkets will have to rethink of their omni-channel structures to maintain and increase their market share. This is of particular importance during turbulent times such as the ones we are experiencing now.

scholarly journals Contracts Adjustment under Bilateral Information Updating in a Supply Chain

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Xinhui Wang ◽  
Yingsheng Su ◽  
Zihan Zhou ◽  
Yiling Fang
Keyword(s):  
Supply Chain ◽  
Production Cost ◽  
Wholesale Price ◽  
Transfer Payment ◽  
Market Demand ◽  
Order Quantity ◽  
Minimum Order ◽  
Information Updating ◽  
Minimum Order Quantity ◽  
Market Outlook

This paper investigates contracts adjustment between one manufacturer and one retailer under bilateral information updating. The manufacturer incurs uncertain production cost and the retailer faces uncertain demand, but they can acquire independent signals to update production cost and demand, respectively. They commit an initial agreement on an initial wholesale price, minimum order quantity, and information sharing as well as the transfer payment and decisions adjustment when information is updated. We find that due to the joint impact of production cost variation and market variation, the manufacturer may not decrease (increase) her wholesale price when the updated production cost is lower (higher) than expected. The retailer places an additional order even if the wholesale price rises when the market outlook is good, but places an order with the minimum order quantity even if the wholesale price falls when the market outlook is bad. Secondly, for a certain level of information accuracy of the production cost and market demand, the retailer is always better off with information updating, but the manufacturer may be worse off with information updating when facing a bad market outlook. Thirdly, when information accuracy of the production cost and market demand varies, the manufacturer only benefits from a high accuracy of production cost. Profits of the retailer and the supply chain are increasing (decreasing) with accuracy of production cost if the updated production cost is larger (smaller) than expected.

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.

scholarly journals Service and Price Decisions of a Supply Chain with Optional After-Sale Service

2016 ◽  
Vol 2016 ◽  
pp. 1-11
Author(s):  
Xiaochen Sun ◽  
Qingshuai Zhang ◽  
Yancong Zhou
Keyword(s):  
Quality Assurance ◽  
Supply Chain ◽  
Wholesale Price ◽  
Service Level ◽  
Retail Price ◽  
High Quality ◽  
Optional Service ◽  
Durable Products ◽  
Purchase Behaviors

For durable products, the high quality after-sales service has been playing an increasingly important role in consumers’ purchase behaviors. We mainly study a supply chain composed of a manufacturer and a retailer. In a process of products sales, the manufacturer will provide a basic free quality assurance service. On this basis, the retailer provides paid optional quality assurance service to consumers to promote sales. Users are divided into two categories in this paper: users with no optional service and users with optional services. We derive the equilibrium decisions between the manufacturer and the retailer under the following two cases: (i) the optional after-sales service level and the wholesale price determined by the manufacturer and the retail price determined by the retailer; (ii) the wholesale price determined by the manufacturer and the optional after-sales service level and the retail price determined by the retailer.

High Quality Graphene Formation on 3C-SiC/4H-AlN/Si Heterostructure

2014 ◽  
Vol 806 ◽  
pp. 89-93 ◽  
Author(s):  
Sai Jiao ◽  
Yuya Murakami ◽  
Hiroyoki Nagasawa ◽  
Hirokazu Fukidome ◽  
Isao Makabe ◽  
...  
Keyword(s):  
Quality Improvement ◽  
Production Cost ◽  
Structural Quality ◽  
Si Substrate ◽  
High Quality ◽  
Device Applications ◽  
High Scalability ◽  
Nanoelectromechanical System ◽  
Sic Film

The growth of graphene on 3C-SiC/Si heterostructure is a promising approach, which provides low production cost, high scalability and easiness of nanoelectromechanical system fabrication. However, the quality of graphene is still insufficient for device applications due to mediocre morphological and structural quality of the 3C-SiC epilayers compared to bulk SiC crystals and to excessive Si out-diffusion from the Si substrate. Here, we propose a solution of inserting a 4H-AlN layer between 3C-SiC and Si, which allows us to polish the 3C-SiC film without worrying about enhancement of the Si out-diffusion despite the thinning after the polishing. With this insertion, a considerable quality improvement is achieved in our graphene on silicon.

scholarly journals IKLIM USAHA INDUSTRI PENGOLAHAN BIJI KAKAO

2018 ◽  
Vol 1 (1) ◽  
pp. 3-26
Author(s):  
Firman Mutakin ◽  
Tumpal Sihaloho
Keyword(s):  
Production Cost ◽  
Industrial Process ◽  
Raw Material ◽  
Business Climate ◽  
Cocoa Beans ◽  
High Quality ◽  
Processing Industry ◽  
The Past ◽  
Industrial Performance

Indonesia is one among three major producers of cocoa beans. Nevertheless, industrial performance of cocoa beans industrial process bearish for the past few years. The purposes of this research are to analyse policies related to development the cocoa processing industry as well as analizing factor which cause low quality of cocoa beans. Factors that caused an uncondusif business climate on cocoa beans industry ar among of hers; high administrative fee in form of tax and entry charges for raw material that caused and increase in production cost structure of the industrial process of the cocoa beans, The low quality of the cocoa benas itself resulted from the un willingness of the farmers to ferment their products, ages of plantswhich more that its productive age and caused small beans producted, mixture between high quality and low quality beans and bugs infection of cocoa plants.

scholarly journals Quality Decision-Making Behavior of Bodies Participating in the Agri-Foods E-Supply Chain

2020 ◽  
Vol 12 (5) ◽  
pp. 1874
Author(s):  
Xu Jing ◽  
Yao Guanxin ◽  
Dai Panqian
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chains ◽  
Food Supply ◽  
Quality Information ◽  
Business Practices ◽  
Quality Inspection ◽  
High Quality ◽  
Decision Making Behavior

The quality of agri-foods in e-supply chains confronts more threats than that in the traditional agri-food supply chain. However, most of the existing studies focusing on the quality problems of fresh agri-products are mainly cases studies and statistical analyses, and they do not take into account the farmers’ willingness to comply with safe agri-food supply procedures. To solve the supply quality problems of fresh agri-foods and help participators make a better choice, the decision-making behavior on the supply quality of agri-foods in the e-supply chain was deeply studied in this paper using game theory. Some factors related to the decision behavior of the supply chain were analyzed, including the supervision intension of the government, the rights protection consciousness of consumers, and the intensity of punishment for poor-quality agri-foods. These factors have an important influence on the farmers’ willingness to provide high-quality products and e-business’ probability of inspection. Compared with three different decision models of agri-food e-supply chains, the results show that the decentralized decision model is better than the centralized model from the view of quality protection. The behavior of members of the supply chain is as follows: the farmers’ willingness to supply high-quality agri-foods increases with the increase in the consumers’ consciousness of their rights and the government’s supervision intensity. The “experience deviation” phenomenon also occurs when a new e-business makes a decision about its quality inspection behavior in this e-supply chain where the quality information is traceable. As such, e-business enterprises should reduce their quality inspection behavior based on the increase in the government’s supervision intensity. This happens to be opposite to the traditional experience where quality information is not traceable. This study not only extends the research framework of the novel electronic supply chain, but also provides a certain reference for the subsequent research and e-business practices of fresh produce in developing countries.

The Achievement of Archiving Analog Seismograms in Japanese Institutes for 15 Yr

2020 ◽  
Vol 91 (3) ◽  
pp. 1452-1458
Author(s):  
Ritsuko S. Matsu’ura ◽  
Norihito Umino ◽  
Yoshiaki Tamura ◽  
Yoshihisa Iio ◽  
Minoru Kasahara ◽  
...  
Keyword(s):  
Sixteenth Century ◽  
High Definition ◽  
Research Papers ◽  
High Quality ◽  
International Evaluation ◽  
Data Preservation ◽  
Continuous Support ◽  
The Common

Abstract Since 2004, more than 100,000 smoked paper seismograms have been preserved as high-definition image files in three academic institutes in Japan. Also, 27,000 analog records on 35 mm films of 0.6 m long were converted to tiff files in two institutes. In the process of scanning analog records, we have obtained several tips for the preservation of records. Some records were found and organized in their original places after decades of the archiving process. A few scientific findings for old earthquakes have been obtained using the image files of analog records. Our work induced another project of preserving smoked paper seismograms obtained by government operations in Japan by the same manner. To continue archiving data that are not immediately linked to an increase in the number of research papers at each institute, continuous support such as the international evaluation of the high quality of our archives is fairly important, along with our own ceaseless efforts. To not make future researchers struggle in the same way that we did, it is necessary to foster among seismologists the common traits of data preservation, which astronomers have shared since the sixteenth century.

Sign in / Sign up

Export Citation Format

Share Document