scholarly journals Electronic Markets Selection in Supply Chain with Uncertain Demand and Uncertain Price

2015 ◽  
Vol 2015 ◽  
pp. 1-13
Author(s):  
Fengmei Yang ◽  
Yakun Wang ◽  
Jie Pei ◽  
Jian Li
Keyword(s):  
Supply Chain ◽  
Demand Uncertainty ◽  
Retail Price ◽  
Sensitivity Analyses ◽  
Uncertain Demand ◽  
Electronic Market ◽  
Price Uncertainty ◽  
The Impact ◽  
Selection Of ◽  
Key Questions

In recent years, more and more companies start online operation. Electronic market becomes a key component of some companies’ strategy. Supply chain management is another key component of the strategy as being adopted by an increasing number of companies. There are many interactions between electronic market and supply chain. One of the key questions is to select one type of electronic market from the view of supply chain. This paper develops some models to explore the issue of selection between public electronic market and private electronic market in three scenarios where electronic market is used for buying, for selling, and for both selling and buying, respectively. In a public electronic market, neither the supplier nor the retailer is the owner of the electronic market. However, in a private electronic market, there is an owner that is either the supplier or the retailer. Besides demand uncertainty, we take into account the price uncertainty in electronic market. We explore the conditions under which the agent of supply chain selects one certain type of electronic market by comparing expected profits of supply chain members in different scenarios. Some sensitivity analyses are conducted to explore the impact of the customer demand, electronic market retail price, and e-market use fee on the selection of electronic market. Finally, some interesting managerial and academic insights are obtained.

scholarly journals Impact of Risk Aversion on Price and Quality Decisions under Demand Uncertainty via the CARA Utility Function

2014 ◽  
Vol 2014 ◽  
pp. 1-15 ◽  
Author(s):  
Qinqin Li ◽  
Zhiying Liu ◽  
Yi He
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Demand Uncertainty ◽  
Absolute Risk ◽  
Wholesale Price ◽  
Retail Price ◽  
Cost Coefficient ◽  
Stackelberg Model ◽  
Cara Utility ◽  
The Impact

This paper investigates optimal price and quality decisions of a manufacturer-retailer supply chain under demand uncertainty, in which players are both risk-averse decision makers. The manufacturer determines the wholesale price and quality of the product, and the retailer determines the retail price. By means of game theory, we employ the constant absolute risk aversion (CARA) function to analyze two different supply chain structures, that is, manufacturer Stackelberg model (MS) and retailer Stackelberg model (RS). We then analyze the results to explore the effects of risk aversion of the manufacturer and the retailer upon the equilibrium decisions. Our results imply that both the risk aversion of the manufacturer and the retailer play an important role in the price and quality decisions. We find that, in general, in MS and RS models, the optimal wholesale price and quality decrease with the risk aversion of the manufacturer but increase with the risk aversion of the retailer, while the retail price decreases with the risk aversion of the manufacturer as well as the retailer. We also examine the impact of quality cost coefficient on the optimal decisions. Finally, numerical examples are presented to illustrate the different degree of effects of players’ risk aversion on equilibrium results and to compare results in different models considered.

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.

The impact of supply chain fit on business and innovation performance in Brazilian companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Ricardo Zimmermann ◽  
Luis Miguel D.F. Ferreira ◽  
Antonio Carrizo Moreira ◽  
Ana Cristina Barros ◽  
Henrique Luiz Correa
Keyword(s):  
Supply Chain ◽  
Business Performance ◽  
Demand Uncertainty ◽  
Supply And Demand ◽  
Empirical Studies ◽  
Innovation Performance ◽  
Manufacturing Companies ◽  
Content Type ◽  
The Impact ◽  
Positive Effect

PurposeThis paper investigates the effect of the fit between supply and demand uncertainty (SDU) and supply chain responsiveness (SCR) (SC fit) on business and innovation performance in Brazilian companies.Design/methodology/approachThe study presented an analysis carried out on an empirical study based on a sample of 150 manufacturing companies. Business and innovation performance of companies with different types of SC fit ( high–high and low–low fits) and misfit (positive and negative) are compared and discussed.FindingsThe results indicated that SC fit had a positive effect on both business and innovation performance. Further analyses suggested that companies with SC fit present similar business performance, independent of the level of SDU that characterizes the environment where they compete, while companies in environments with higher levels of uncertainty tend to present superior innovation performance. Companies with positive and negative misfit present similar performance.Originality/valueAn analysis of the literature showed that there is no consensus when it comes to the definitions and measurements of SC fit. The paper investigates the effects of SC fit on business and innovation performance, while previous empirical studies have mainly addressed its impact on financial performance. Moreover, this study compares the effects of two types of fit and two types of misfit and assesses SC fit in Brazilian manufacturing companies, analyzing the context of an under-researched reality.

scholarly journals Research on Closed-Loop Supply Chain with Competing Retailers under Government Reward-Penalty Mechanism and Asymmetric Information

2020 ◽  
Vol 2020 ◽  
pp. 1-20 ◽  
Author(s):  
Xiao-qing Zhang ◽  
Xi-gang Yuan ◽  
Da-lin Zhang
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Recovery Rate ◽  
Carbon Emission ◽  
Closed Loop ◽  
Retail Price ◽  
Closed Loop Supply Chain ◽  
Weee Recycling ◽  
The Impact ◽  
Decentralized Model

In manufacturer-led closed-loop supply chain (CLSC) with two competing retailers, the retailer-1 recycles WEEE whose fixed recycling cost is asymmetric information. Using dynamics game theory and principal-agent theory, three dynamic game models are built including (1) benchmark model without reward-penalty mechanism (RPM); (2) decentralized model with carbon emission RPM; (3) decentralized model with carbon emission RPM and recovery rate RPM. This paper discusses the influence of RPM and retailers competition on the CLSC and members benefits. The results show that (1) the carbon emission RPM increases retail price, but decreases the WEEE recycling motivation usually. On the contrary, the recovery rate RPM guides WEEE recycling and lowers the retail price effectively. (2) In any case, the retailer-1’s profit is higher than that of the retailer-2; apparently it suggests that the retailer recycling WEEE gains competitive advantages. Furthermore, both the recovery rate RPM and retailers competition are beneficial to improve the competitive advantage. The relationship between two retailers’ retail price is affected by many complicated factors. (3) The WEEE buyback price and WEEE recovery rate with high fixed recycling cost (H-type) are always higher than that of low fixed recycling cost (L-type), respectively, which means that the H-type fixed recycling cost has scale advantages; the greater the reward-penalty intensity and the fiercer the competition, the more obvious the scale advantages under certain condition. (4) The retailers’ competition can not only guide WEEE recycling but also improve retailers’ profits. Meanwhile, the impact of competition on the manufacturer is related to RPM, but the fierce competition decreases the manufacturer’s profit.

scholarly journals Research on the Dynamics Game Model in a Green Supply Chain: Government Subsidy Strategies under the Retailer’s Selling Effort Level

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-15 ◽  
Author(s):  
Xigang Yuan ◽  
Xiaoqing Zhang ◽  
Dalin Zhang
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Dynamic Game ◽  
Retail Price ◽  
Green Supply Chain ◽  
Government Subsidy ◽  
Principal Agent Theory ◽  
Effort Level ◽  
The Impact ◽  
Selling Effort

Based on dynamic game theory and the principal-agent theory, this paper examined different government subsidy strategies in green supply chain management. Assuming that the retailer’s level of selling effort involved asymmetric information, this study analyzed the impact of different government subsidy strategies on the wholesale price, the product greenness level, retail price, the level of selling effort, the manufacturer’s profit, and the retailer’s profit. The results showed that (1) the government’s subsidy strategy can effectively not only improve the product greenness level but also increase the profits of an enterprise in a green supply chain, which helps the retailer to enhance their selling effort; (2) regardless of whether the retailer’s level of selling effort was high or low, as the government’s subsidy coefficient increased, the wholesale price continued to decrease, and the product greenness level and retailer’s selling effort level also increased.

On the Applicability of Analytical Supply Chain Disruption Models for Selecting the Optimum Contingency Strategies for Electronic Supply Chain Disruption Management: A Comparison With Simulation

2014 ◽  
Author(s):  
Hannah Allison ◽  
Peter Sandborn ◽  
Bo Eriksson
Keyword(s):  
Supply Chain ◽  
Mitigation Strategy ◽  
Mitigation Strategies ◽  
Analytical Models ◽  
Supply Chain Disruption ◽  
Simulation Based ◽  
Disruption Mitigation ◽  
The Impact ◽  
Selection Of

Due to the nature of the manufacturing and support activities associated with long life cycle products, the parts that products required need to be dependably and consistently available. However, the parts that comprise long lifetime products are susceptible to a variety of supply chain disruptions. In order to minimize the impact of these unavoidable disruptions to production, manufacturers can implement proactive mitigation strategies. Two mitigation strategies in particular have been proven to decrease the penalty costs associated with disruptions: second sourcing and buffering. Second sourcing involves selecting two distinct suppliers from which to purchase parts over the life of the part’s use within a product or organization. Second sourcing reduces the probability of part unavailability (and its associated penalties), but at the expense of qualification and support costs for multiple suppliers. An alternative disruption mitigation strategy is buffering (also referred to as hoarding). Buffering involves stocking enough parts in inventory to satisfy the forecasted part demand (for both manufacturing and maintenance requirements) for a fixed future time period so as to offset the impact of disruptions. Careful selection of the mitigation strategy (second sourcing, buffering, or a combination of the two) is key, as it can dramatically impact a part’s total cost of ownership. This paper studies the effectiveness of traditional analytical models compared to a simulation-based approach for the selection of an optimal disruption mitigation strategy. A verification case study was performed to check the accuracy and applicability of the simulation-based model. The case study results show that the simulation model is capable of replicating results from operations research models, and overcomes significant scenario restrictions that limit the usefulness of analytical models as decision-making tools. Four assumptions, in particular, severely limit the realism of most analytical models but do not constrain the simulation-based model. These limiting assumptions are: 1) no fixed costs associated with part orders, 2) infinite-horizon, 3) perfectly reliable backup supplier, and 4) disruptions lasting full ordering periods (as opposed to fractional periods).

scholarly journals Pricing Decisions of a Dual-Channel Closed-Loop Supply Chain under Uncertain Demand of Indirect Channel

2016 ◽  
Vol 2016 ◽  
pp. 1-13 ◽  
Author(s):  
Jie Gao ◽  
Xiong Wang ◽  
Qiuling Yang ◽  
Qin Zhong
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Uncertain Demand ◽  
Direct Channel ◽  
Closed Loop Supply Chain ◽  
Pricing Decisions ◽  
Dual Channel ◽  
Decentralized Decision Making ◽  
The Impact

The dual-channel closed-loop supply chain (CLSC) which is composed of one manufacturer and one retailer under uncertain demand of an indirect channel is constructed. In this paper, we establish three pricing models under decentralized decision making, namely, the Nash game between the manufacturer and the retailer, the manufacturer-Stackelberg game, and the retailer-Stackelberg game, to investigate pricing decisions of the CLSC in which the manufacturer uses the direct channel and indirect channel to sell products and entrusts the retailer to collect the used products. We numerically analyze the impact of customer acceptance of the direct channel (θ) on pricing decisions and excepted profits of the CLSC. The results show that when the variableθchanges in a certain range, the wholesale price, retail price, and expected profits of the retailer all decrease whenθincreases, while the direct online sales price and manufacturer’s expected profits in the retailer-Stackelberg game all increase whenθincreases. However, the optimal recycling transfer price and optimal acquisition price of used product are unaffected byθ.

scholarly journals Simulation experiments of supply chain in a period of small and big disasters

2021 ◽  
Vol 43 ◽  
pp. 339-356
Author(s):  
Marcin Halicki ◽  
◽  
Tadeusz Kwater ◽  
Keyword(s):  
Supply Chain ◽  
Random Number Generator ◽  
Scientific Research ◽  
Graphical Analysis ◽  
Jel Classification ◽  
Anal Ysis ◽  
Value Contribution ◽  
One Year ◽  
The Impact ◽  
Selection Of

Aim/purpose – The aim of this paper is to present a strategy that allows companies to recover from disasters, when creating a supply chain. Furthermore, it also shows the impact on the company’s resources that are used in the implementation of the strategy in case of small and big disasters. Thanks to the proposed solution, it is possible to analyze each company individually, as well as in groups, at any given time. Design/methodology/approach – The results were obtained based on a numerical anal- ysis which was performed with the use of MATLAB software. The tests were carried out separately for five companies, as each of them may expect a disaster on any different day. However, the selection of the day when crises occur is carried out in accordance with the probability determined by scientific research. Findings – The research showed that companies using their resources can continue to fulfill their functions as a link in the Supply Chain despite the fact that they react differ- ently to small disasters compared to big ones. This difference occurs since small disas- ters in contrast to big ones appear in every company much more often. Consequently, it is more difficult for companies to build their wealth in the case of small disasters. The advantage of the proposed approach is that one can freely test which strategy can cause the least losses for the company as well as for the entire supply chain. Research implications/limitations – The analysis carried out shows that companies wishing to develop in conditions of unexpected disasters, that cannot be predicted, should regularly increase their assets because they are needed to implement a strategy that allows them to maintain an appropriate operational level. This approach provides tools that enable the selection of strategies with variable parameters, freely determined during the scientific research. Originality/value/contribution – The paper presents a graphical analysis of the change in the value of resources of a supply chain company over one year period. Such an anal- ysis may be useful for any company that creates a supply chain during the COVID-19 crisis period, which is an unpredictable disaster. The adoption of a Gaussian Pseudo Random Number Generator turned out to be useful as it creates crises days while simula- tion studies allow us to generate experiments for different data configurations. This pa- per provides an analysis of small and large disasters separately, which is an approach not presented in the literature. Keywords: supply chain, disaster, strategy, threats, simulations. JEL Classification: M21, D81, D84, C44

scholarly journals The Influence of Buyer Power on Supply Chain Pricing with Downstream Competition

2019 ◽  
Vol 11 (10) ◽  
pp. 2924
Author(s):  
Qiu Zhao
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Consumer Welfare ◽  
Retail Price ◽  
Retail Market ◽  
Pricing Decisions ◽  
Buyer Power ◽  
Downstream Competition ◽  
The Impact ◽  
Vertical Market

This paper aims to investigate the impact of buyer power on the wholesale price and retail price of, in the case, downstream competition. Based on a summary of the competitive characteristics of China’s retail market, a model of a vertical market was constructed to examine the influence of buyer power on the pricing decisions of manufacturers and retailers, and to analyze the mechanism of price decisions. The results showed that the buyer power of national retailers reduced the wholesale price, but the impact on local retailers remained uncertain. Although increasing buyer power initially increased the local retailer’s wholesale price and caused the ‘waterbed effect’, we found that this effect reverted when the buyer power reached a point at which the ‘anti-waterbed effect’ appeared. The opposite was true of the retail price. However, buyer power reduced the average retail price, and consumer welfare improved.

The risk assessment of manufacturing supply chains based on Bayesian networks with uncertainty of demand

2021 ◽  
pp. 1-19
Author(s):  
Mengjun Meng ◽  
Qiuyun Lin ◽  
Yingming Wang
Keyword(s):  
Risk Assessment ◽  
Supply Chain ◽  
Information Sharing ◽  
Evaluation System ◽  
Demand Uncertainty ◽  
Risk Identification ◽  
Assessment Model ◽  
Risk Indicators ◽  
Uncertain Demand ◽  
Manufacturing Supply Chain

The great changes in the external environment of the manufacturing supply chain make its demand more complex and difficult to control. This paper takes China as an example. According to questionnaire survey and principal component analysis, the risk indicators caused by uncertain demand are screened and classified to construct evaluation system and complete risk identification. The Bayesian network integrating fuzzy set theory and left and right fuzzy ranking is used to explore the relationship between risk indicators and supply chain to achieve risk evaluation. In view of the highest risk factors, an incentive mechanism model based on information sharing is put forward to prove theoretically that information sharing is an important strategy to reduce risk. The results are as follows: The uncertain demand will lead to a high level of risk in China’s manufacturing supply chain, in which the level of information technology is the biggest cause. Only when manufacturing enterprises are willing to share information and other node enterprises join the information sharing team, can demand uncertainty be fundamentally reduced. The proposed risk assessment model realizes the method innovation and theoretical innovation. It can practical and effectively help relevant enterprises to determine and control risks.

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