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.

Pricing and service decision of dual-channel operations in an O2O closed-loop supply chain

2017 ◽  
Vol 117 (8) ◽  
pp. 1567-1588 ◽  
Author(s):  
Lingcheng Kong ◽  
Zhiyang Liu ◽  
Yafei Pan ◽  
Jiaping Xie ◽  
Guang Yang
Keyword(s):  
Supply Chain ◽  
Closed Loop ◽  
Wholesale Price ◽  
Revenue Sharing ◽  
Service Level ◽  
Return Rate ◽  
Transfer Payment ◽  
Channel Conflict ◽  
Content Type ◽  
Dual Channel

Purpose The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the closed-loop supply chain (CLSC) changed the relationship between manufacturers and retailers, thus resulting in channel conflict. The purpose of this paper is to take a dual-channel operations of CLSC as the research target, where a manufacturer sells a single product through a direct e-channel as well as a conventional retail channel; the retailer are responsible for collecting used products in the reverse supply chain and the manufacturer are responsible for remanufacturing. Design/methodology/approach The authors build a benchmark model of dual-channel price and service competition and take the return rate, which is considered to be related to the service level of the retailer, as the function of the service level to extend the model in the reverse SC. The authors then analyze the optimal pricing and service decision under centralization and decentralization, respectively. Finally, with the revenue-sharing factor, wholesale price and recycling price transfer payment coefficient as contract parameters, the paper also designs a revenue-sharing contract led by the manufacturer and explores in what situation the contract could realize the Pareto optimization of all players. Findings In the baseline model, the results show that optimal price and service level correlate positively in centralization; however, the relation relies on consumers’ price sensitivity in decentralization. In the extension model, the relationship between price and service level also relies on the relative value of increased service cost and remanufacturing saved cost. When the return rate correlates with the service level, a recycling transfer payment can elevate the service level and thus raise the return rate. Through analyzing the parameters in revenue-sharing contract, a point can be reached where lowering the wholesale price and raising the transfer payment coefficient will promote retailers to share revenue. Practical implications Many enterprises establish the dual-channel distribution system both online and offline, which need to understand how to resolve their channel conflict. The conflict is especially strong in CLSC with remanufacturing. The result helps the node enterprises realize the coordination of the dual-channel CLSC. Originality/value It takes into account the fact that there are two complementary relationships, such as online selling and offline delivery; used product recycling and remanufacturing. The authors optimize the strategy of product pricing and service level in order to solve channel conflict and double marginalization in the closed-loop dual-channel distribution network.

scholarly journals Emergency Coordination Model of Fresh Agricultural Products’ Three-Level Supply Chain with Asymmetric Information

2016 ◽  
Vol 2016 ◽  
pp. 1-9 ◽  
Author(s):  
Juan Yang ◽  
Haorui Liu ◽  
Xuedou Yu ◽  
Fenghua Xiao
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
Nonlinear Function ◽  
Retail Price ◽  
Agricultural Products ◽  
Agricultural Product ◽  
Coordination Model ◽  
Emergency Events

In consideration of influence of loss, freshness, and secret retailer cost of products, how to handle emergency events during three-level supply chain is researched when market need is presumed to be a nonlinear function with retail price in fresh agricultural product market. Centralized and decentralized supply chain coordination models are studied based on asymmetric information. Optimal strategy of supply chain in dealing with retail price perturbation is caused by emergency events. The research reveals robustness for optimal production planning, wholesale price for distributors, wholesale price for retailers, and retail price of three-level supply chain about fresh agricultural products. The above four factors can keep constant within a certain perturbation of expectation costs for retailers because of emergency events; the conclusions are verified by numerical simulation. This paper also can be used for reference to the other related studies in how to coordinate the supply chain under asymmetric and punctual researches information response to disruptions.

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.

Decision Models of Supply Chain Under Asymmetric Information with Demand Disruption

2010 ◽  
Vol 143-144 ◽  
pp. 773-781
Author(s):  
Xin Rong Jiang ◽  
Yong Chao Li
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Retail Price ◽  
Expected Profit ◽  
Decision Models ◽  
Market Demand ◽  
Optimal Production ◽  
Production Quantity

This paper studied the influence of asymmetric information and demand disruption on the decision of the supply chain. We analyzed the supply chain decision models based on a Stackelberg game under normal circumstances and demand disruption situation. The conclusion indicates when the market demand is disrupted, the optimal wholesale price, the retail price, the supplier’s expected profit and the supply chain system’s expected profit change in the same direction as the demand disruption, while the optimal production quantity and the retailer’s profit both have certain robustness under disruption. Finally we gave a numerical example to illustrate our analysis.

Information Disclosure Model Under Supply Chain Competition with Asymmetric Demand Disruption

2016 ◽  
Vol 33 (06) ◽  
pp. 1650043 ◽  
Author(s):  
Kebing Chen ◽  
Renxing Xu ◽  
Hanwei Fang
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Information Disclosure ◽  
Information Structure ◽  
Wholesale Price ◽  
Retail Price ◽  
Supply Side ◽  
Full Information ◽  
Supply Chain Competition ◽  
Information Rent

This paper develops the game models of two symmetric supply chains, each consisting of one manufacturer and one retailer, while both retailers compete in the market with a linear function. The disclosure mechanism is designed when the information of the disrupted demand is asymmetric between supply side and retail side. We first study the model with the full information as a benchmark to explore the effect of asymmetric information on the system. In the case, each manufacturer maximizes her profit while the downstream retailer only obtains the reservation profit. For the case of asymmetric information, each manufacturer can obtain the real information of the disrupted demand by using a menu of contract bundles. For each information structure, there are always robust regions for each manufacturer’s original trading quantity scheme. That is, when the disrupted amount of the demand is sufficiently small, the trading quantity will be unchanged. However, some special measures, e.g., the higher unit wholesale price, should be taken to prevent the retailer from deviating the trading quantity scheme. The high-disruption retailer gets the higher profit due to the information rent. Compared with a single supply chain, Cournot competition results in the less retail price and the lower performance for the whole system.

scholarly journals Equilibrium decisions on pricing and innovation that impact reference price dynamics

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Shaokun Tao ◽  
Xianjin Du ◽  
Suresh P. Sethi ◽  
Xiuli He ◽  
Yu Li
Keyword(s):  
Supply Chain ◽  
Steady State ◽  
Reference Price ◽  
Stackelberg Game ◽  
Interactive Effect ◽  
Wholesale Price ◽  
Retail Price ◽  
Price Ratio ◽  
Reference Prices ◽  
Consumer Memory

<p style='text-indent:20px;'>Previous studies have confirmed that reference prices play an essential role in consumer purchasing decisions, and some researchers have suggested that reference prices are positively influenced by innovation. Therefore, we construct an interactive effect of innovation and reference price to study their combined impact on supply chain decisions. We model a supply chain, where a manufacturer determines the innovation level and the wholesale price while the retailer controls the retail price, as a dynamic Stackelberg game. We show that the interactive effect causes the steady-state wholesale and retail prices to increase, thus motivating the manufacturer to increase innovation investment. We see that the retail price and the level of innovation increase in reference price effect whereas they decrease in consumer memory. The centralized firm has a higher steady-state innovation level and innovation/price ratio and lower steady-state retail price compared to the decentralized supply chain. Consumers also benefit from the interactive effect as well as from centralization. Finally, we use numerical analysis to demonstrate our results and offer some managerial implications.</p>

scholarly journals Green Supply Chain Management with Nash Bargaining Loss-Averse Reference Dependence

Mathematics ◽  
2021 ◽  
Vol 9 (24) ◽  
pp. 3154
Author(s):  
Wentao Yi ◽  
Zhongwei Feng ◽  
Chunqiao Tan ◽  
Yuzhong Yang
Keyword(s):  
Supply Chain ◽  
Loss Aversion ◽  
Reference Point ◽  
Wholesale Price ◽  
Optimal Strategies ◽  
Retail Price ◽  
Nash Bargaining ◽  
Green Supply Chain ◽  
Bargaining Solution ◽  
Efficiency Coefficient

This paper investigates a two-echelon green supply chain (GSC) with a single loss-averse manufacturer and a single loss-averse retailer. Since the Nash bargaining solution exactly characterizes endogenous power and the contribution of the GSC members, it is introduced as the loss-averse reference point for the GSC members. Based on this, a decision model of the two-echelon GSC with loss aversion is formulated. The optimal strategies of price and product green degree are derived in four scenarios: (a) the centralized decision scenario with rational GSC members, namely the CD scenario; (b) the decentralized decision scenario with rational GSC members, namely the DD scenario; (c) the decentralized decision scenario with the GSC members loss-averse, where the manufacturer’s share is below its own loss-averse reference point, namely the DD(∆m ≥ πm) scenario; (d) the decentralized decision scenario with the GSC members loss-averse, where the retailer’s share is below its own loss-averse reference point, namely the DD(∆r ≥ πr) scenario. Then, a comparative analysis of the optimal strategies and profits in these four scenarios is conducted, and the impacts of loss aversion and green efficiency coefficient of products (GECP) on the GSC are also performed. The results show that (i) GECP has a critical influence on the retail price and the wholesale price; (ii) the GSC with loss aversion provide green products with the lowest green degree; (iii) the retail price, the wholesale price and product green degree are decreasing monotonically with the loss aversion level of the GSC member without incurring loss; (iv) furthermore, the effect of the loss aversion level of the GSC member with incurring loss on the optimal strategies is related to GECP and the gap between the GSC members’ loss aversion levels.

scholarly journals Managing a Dual-Channel Supply Chain with Fairness and Channel Preference

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Xianjin Du ◽  
Weijie Zhao
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Retail Price ◽  
Supply Chain Design ◽  
Operational Strategies ◽  
Dual Channel ◽  
Channel Preference ◽  
Online Channel ◽  
Set Up ◽  
Dual Channel Supply Chain

This paper investigates a dual-channel supply chain in which a manufacturer sells the product via an offline retailer or online store. The manufacturer sets the wholesale and online price, and the retailer decides the retail price with the retailer’s fairness preference and consumer’s online channel preference. Through investigating the combined impacts of fairness preference and channel preference on the enterprises’ operational strategies, this paper obtains some meaningful results. If a manufacturer thinks over the fairness preference, he decreases the wholesale price to mitigate a loss of retailer and benefit the supply chain design. The manufacturer intends to set up the online channel with a lower acceptance as the fairness preference grows. However, the gains from enhanced online channel acceptance cannot compensate for the manufacturer’s loss by the fairness effect that benefits the retailer. Moreover, the manufacturer cannot neglect the retailer’s fairness preference generating a “lose-lose” case for both members.

scholarly journals Decentralized Supply Chains under Random Price-Dependent Demand: Noncooperative Equilibria vs. Coordination with Cost-Sharing Contracts

2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Yanpeng Sun ◽  
Cheng Ma ◽  
Qi Sun
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Wholesale Price ◽  
Retail Price ◽  
Lost Sales ◽  
Supply Chain System ◽  
Decentralized Supply Chain ◽  
Equilibrium Response ◽  
Buy Back ◽  
Dependent Demand

It is common for a supplier to sell products to multiple retailers. In this paper, we investigate the equilibrium behavior of a decentralized supply chain with multiple retailers facing a random price-dependent demand in the additive form. Here, we consider two kinds of demand functions: the distribution of the demand depends only on the retailer’s own retail price (noncompeting retailers) and not only on his own retail price but also on that of the other retailers (competing retailers). We present appropriate wholesale price, buy-back, and lost-sales cost-sharing contracts to coordinate the total supply chain, so that when all the retailers adopt their equilibrium response, the supply chain system coordination is also achieved. Furthermore, the coalition formation among retailers is also analyzed. We find that with buy-back and lost-sales cost-sharing contracts and linear price-dependent demand function, retailers always prefer being in the grand coalition to forming any other coalition.

scholarly journals CSR Remanufacturing Supply Chains under WTP Differentiation

2020 ◽  
Vol 12 (6) ◽  
pp. 2197
Author(s):  
Lili Dai ◽  
Tong Shu ◽  
Shou Chen ◽  
Shouyang Wang ◽  
Kin Keung Lai
Keyword(s):  
Sustainable Development ◽  
Corporate Social Responsibility ◽  
Supply Chain ◽  
Social Responsibility ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Consumer Surplus ◽  
Retail Price ◽  
Recycling Rate ◽  
Corporate Social

With the shortage of global resources and the call for sustainable development, the remanufacturing supply chain and the corporate social responsibility of enterprises have attracted extensive attention from scholars. This paper studies a manufacturer-retailer corporate social responsibility (CSR) remanufacturing supply chain in which the manufacturer collects the used products grounded in the willingness to pay (WTP) differentiation. Different from previous literature, this paper first adds WTP differences to the CSR remanufacturing supply chain. Next, we analyze the manufacturer exhibiting CSR activity by Stackelberg game theory in both centralized and decentralized models with a consideration of prices, recycling, consumer surplus, and profits for the chain players in the two models with different CSR ratios. Through calculation and analyses of the models, we note that the chain members have the best status when the consumers’ WTP for new and remanufactured products is within a threshold. Subsequently, we compare the optimal price decisions and the expected profits in the decentralized and centralized systems, and we find that the retail price, wholesale price, and recycling rate decrease with a rising CSR under WTP differentiation. The centralized retail price is lower than the decentralized one. Conversely, the profit is higher when the increment of demand is higher. On top of that, in common cases, the pure and total profits of manufacturing are ascending while the retailer’s profit is descending. We also find that the consumer surplus is increasing in two cases. Finally, to motivate the players in the supply chain to engage in CSR activity, we consider the revenue sharing contract. From the perspective of WTP differences, this paper studies CSR remanufacturing, which has certain influences on the sustainable development of the economy.

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