scholarly journals Optimal Ordering and Pricing Policies for Seasonal Products: Impacts of Demand Uncertainty and Capital Constraint

2016 ◽  
Vol 2016 ◽  
pp. 1-13 ◽  
Author(s):  
Jinzhao Shi ◽  
Richard Y. K. Fung ◽  
Ju’e Guo
Keyword(s):  
Demand Uncertainty ◽  
Lower Price ◽  
Market Demand ◽  
High Demand ◽  
Pricing Policies ◽  
Pricing Decision ◽  
Optimal Ordering ◽  
The Impact ◽  
Uncertainty Level ◽  
Seasonal Products

With a stochastic price-dependent market demand, this paper investigates how demand uncertainty and capital constraint affect retailer’s integrated ordering and pricing policies towards seasonal products. The retailer with capital constraint is normalized to be with zero capital endowment while it can be financed by an external bank. The problems are studied under a low and high demand uncertainty scenario, respectively. Results show that when demand uncertainty level is relatively low, the retailer faced with demand uncertainty always sets a lower price than the riskless one, while its order quantity may be smaller or larger than the riskless retailer’s which depends on the level of market size. When adding a capital constraint, the retailer will strictly prefer a higher price but smaller quantity policy. However, in a high demand uncertainty scenario, the impacts are more intricate. The retailer faced with demand uncertainty will always order a larger quantity than the riskless one if demand uncertainty level is high enough (above a critical value), while the capital-constrained retailer is likely to set a lower price than the well-funded one when demand uncertainty level falls within a specific interval. Therefore, it can be further concluded that the impact of capital constraint on the retailer’s pricing decision can be influenced by different demand uncertainty levels.

Uncertainty and Learning in International Joint Ventures

2012 ◽  
Vol 13 (1) ◽  
pp. 82-96
Author(s):  
Sangcheol Song
Keyword(s):  
Real Options ◽  
Joint Ventures ◽  
Demand Uncertainty ◽  
Investment Decision ◽  
Market Demand ◽  
Strategic Choices ◽  
Endogenous Uncertainty ◽  
The Real ◽  
The Impact

This study deals with the potential interplays between two uncertainty types (endogenous vs. exogenous uncertainty) and the role of learning in joint ventures (JVs) from the real options perspective. Regarding the role of learning under different types of uncertainty in JVs, one stream of real options research argues that learning has nothing to do with investment decision, while the other stream of research argues that investment decision is endogenous to learning. Considering that investment decisions embedded in JVs are affected by endogenous uncertainty (e.g., partner uncertainty) and exogenous uncertainty (e.g., demand uncertainty), this study suggests a conceptual model which takes into account the impact of endogenous uncertainty and firm’s learning of JV partners and market demand on real options value and exercise. Since almost all real options research focuses on exogenous uncertainty and less study learning under the real options framework, we add to this literature by touching upon possible roles of endogenous uncertainty and learning in driving firm’s strategic choices.

scholarly journals The Impact of Cost Information Sharing on Procurement Contract Design

2020 ◽  
Vol 4 (2) ◽  
pp. 34
Author(s):  
Dong Chao ◽  
Yankang Chen
Keyword(s):  
Private Information ◽  
Demand Uncertainty ◽  
Original Problem ◽  
Contract Design ◽  
Model Parameters ◽  
Selling Price ◽  
Optimal Contract ◽  
Market Demand ◽  
Cost Information ◽  
The Impact

In this paper, we provides contract design mechanisms and analysis for manufacturers to manage decentralized supply chain. Suppose the manufacturer’s final product consists of components, each produced by a different supplier, and the manufacturer first purchases components from suppliers, then assembles them into final product and meet demands aftermarket realization. While supply chain’s internal cooperation always benefits both, suppliers are often reluctant to proactively share their own production cost structure, otherwise manufacturers may depress purchase prices, which may reduce supplier’s profit. Manufacturers on the other hand, prefers to be informed of true cost information in order to gain greater revenues. We takes manufacturer’s perspective and design the optimal contract menu for suppliers, both to enable suppliers to disclose private cost information and to maximize the benefits. We start by modeling the original problem and find that the original problem is a complex multidimensional optimization problem. We then examine the nature of the original problem solving and devise the solution algorithm to arrive at the optimal contract menu. This algorithm reduces the complexity of the original question from o(2 n ) to o(n). We further investigate the influence mechanism of model parameters on the results and find that when market demand increases or the selling price of the final product increases, value of private information increases significantly. However, if market demand uncertainty increases, the value of information may increase or decrease for both sides.

scholarly journals Optimal Ordering Decision and Information Leakage Preference Under Asymmetric Forecast Signal

2021 ◽  
Author(s):  
Min Tang ◽  
Li Jiang ◽  
Zhiguo Li ◽  
Hongwu Zhang
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Information Leakage ◽  
The Other ◽  
Market Demand ◽  
Forecasting Accuracy ◽  
Optimal Ordering ◽  
The Impact

Abstract This work investigates the retailer's sourcing decision with or without information leakage and studies the impact of the retailer's inaccurate prediction on supply chain members' preferences for information leakage. To derive the retailers' optimal sourcing quantities under two scenarios, one without and one with information leakage, we formulate a supply chain in which a common manufacturer offers a wholesale price contract to two competing retailers, one of whom (the incumbent) has private prediction information about the market demand, the other one (the entrant) doesn't. Then, we compare the supply chain members' performances, the results show that the manufacturer will prefer no information leakage when the incumbent's forecasting accuracy is high and the forecasting signal is low-type; the incumbent may prefer information leakage under certain conditions; contrary to intuition, the entrant may prefer no information leakage under certain conditions. Meanwhile, we find that the incumbent has an incentive to mimic a low state one by sourcing less product when she forecasts that the market demand will be high under the scenario of information leakage, and interestingly, the incumbent will earn less than the entrant when she obtains a low-type forecast signal under no information leakage.

scholarly journals PRICING POLICIES FOR HIGH DEMAND DATA COMMUNICATIONS, THE CASE OF ALBANIA

2017 ◽  
Vol 5 ◽  
pp. 300-306
Author(s):  
Irena Malolli
Keyword(s):  
Low Cost ◽  
Data Communication ◽  
Market Demand ◽  
Data Traffic ◽  
High Demand ◽  
High Quality ◽  
Mobile Data ◽  
Pricing Policies ◽  
Critical Issues ◽  
The Right

Mobile data traffic has dramatically increased during the recent years. The high demand for data communication increased the challenges for network operators. Communication Network operators are investing to provide more capacities and they are looking for innovative ways to cope with increased market demand for broadband data communication.The liberalization of the telecommunication market and the competition put the operators under pressure to keep high quality services with low cost. New pricing policies are introduced in order to maintain market share and keep their users in a competitive market. The battle with OTT makes the situation more critical.This article will analyze the situation in the field of data communication, compare different instruments which are used or are under development in different countries and in Albania. The article will analyze the pricing policies used for data communication as a solution to cope with the high demand of data traffic. The article will identify some critical issues on these practices, draw conclusions and give some recommendations on the proper ways to keep the right balance between technical and commercial solutions and user experience/satisfaction.

scholarly journals Risk-averse preferences in a dual-channel supply chain with trade credit and demand uncertainty

2020 ◽  
Author(s):  
Chong Zhang ◽  
Yaxian Wang ◽  
Lifan Zhang
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Demand Uncertainty ◽  
Trade Credit ◽  
Channel Structure ◽  
Coordination Mechanism ◽  
Risk Averse ◽  
Market Demand ◽  
Dual Channel ◽  
The Impact

Though it is an important means for enterprises to increase market demand and boost profits, trade credit can carry risks. Besides, risks also result from uncertain market demand. Decision-makers' attitude towards risk will influence the decisions of enterprises, so it is meaningful to study the impact of risk preference on supply chain performance. This paper explores the effect of risk-averse preferences of the manufacturer or retailer on their delayed payment periods decision and utility when the dual-channel structure is adopted. Customer demands are uncertain and depend on the delayed payment periods that the manufacturer and the retailer may offer to them. Mean-variance model is used to describe the risks due to uncertain demand, and establishes supply chain utility models under four decision-making situations (both are risk-neutral; only the retailer is risk-averse; only the manufacturer is risk-averse; both are risk-averse). According to our study, supply chain members with higher risk aversion are more inclined to prolong delayed payment period. The retailer’s risk aversion is adverse for her utility, but beneficial to the manufacturer’s utility, thus a new coordination mechanism is proposed to achieve coordinate when only the retailer is risk averse. We prove that the contract can effectively improve the utility of the whole supply chain. This paper conduces to enrich the emerging literature on relating risk aversion preferences to trade credit period decision and coordination behavior under dual-channel environment.

scholarly journals Konsep Persediaan Minimum Maksimum Pengendalian Part Alat Berat Tambang PT Semen Padang

2016 ◽  
Vol 11 (1) ◽  
pp. 203 ◽  
Author(s):  
Dio Putera Hasian
Keyword(s):  
Preventive Maintenance ◽  
Control Policy ◽  
Service Level ◽  
High Demand ◽  
Heavy Equipment ◽  
Production Activity ◽  
Inventory Control Policy ◽  
Data Consumption ◽  
Demand Rate ◽  
The Impact

Bureau of mining heavy equipment maintenance at PT. Semen Padang have task in maintenance mine heavy equipment with preventive maintenance although breakdown maintenance. Part inventory is needed to make this activity work properly. If stockout happened will have the impact to PT.Semen Padang mining and production activity. To solve this problem, minimum-maximum inventory control policy is used to give an optimum value of inventory mine heavy equipment. This research is focused in filter and lubricant inventory because they have high demand rate. Data consumption filter and lubricant from January until December 2010 is used in this research. The service level that used is 95%. The result is quantity optimum inventory mine heavy equipment at filter and lubricant with application part inventory of mine heavy equipment. Because it can keep stockout although excess inventory.Keywords: stockout, optimum, inventory

scholarly journals Does the Prevalence of Obesity Affect the Demand for Soft Drinks? Evidence from Cross-Country Panel Data

2022 ◽  
Vol 19 (2) ◽  
pp. 938
Author(s):  
Fabrizio Ferretti ◽  
Michele Mariani ◽  
Elena Sarti
Keyword(s):  
Nutrition Education ◽  
Least Squares Method ◽  
Soft Drink ◽  
Soft Drinks ◽  
Market Demand ◽  
Reverse Causality ◽  
Soft Drink Consumption ◽  
Variable Approach ◽  
Prevalence Of Obesity ◽  
The Impact

The impact of soft drinks on obesity has been widely investigated during the last decades. Conversely, the role of obesity as a factor influencing the demand for soft drinks remains largely unexplored. However, understanding potential changes in the demand for soft drinks, as a result of changes in the spread of obesity, may be useful to better design a comprehensive strategy to curb soft drink consumption. In this paper, we aim to answer the following research question: Does the prevalence of obesity affect the demand for soft drinks? For this purpose, we collected data in a sample of 97 countries worldwide for the period 2005–2019. To deal with problems of reverse causality, an instrumental variable approach and a two-stage least squares method were used to estimate the impact of the age-standardized obesity rate on the market demand for soft drinks. After controlling for several demographic and socio-economic confounding factors, we found that a one percent increase in the prevalence of obesity increases the consumption of soft drinks and carbonated soft drinks by about 2.37 and 1.11 L per person/year, respectively. Our findings corroborate the idea that the development of an obesogenic food environment is a self-sustaining process, in which obesity and unhealthy lifestyles reinforce each other, and further support the need for an integrated approach to curb soft drink consumption by combining sugar taxes with bans, regulations, and nutrition education programs.

scholarly journals Benefits of implementing IT tools and procedures for the estimation and measurement uncertainty in testing laboratories

2020 ◽  
Vol 2 (7) ◽  
pp. 317-323
Author(s):  
Maria Cristina Dijmarescu
Keyword(s):  
Measurement Uncertainty ◽  
Rapid Expansion ◽  
Market Demand ◽  
Destructive Testing ◽  
Continuous Increase ◽  
Testing Laboratories ◽  
Quality Of Products ◽  
The Impact ◽  
Non Destructive

Destructive and non-destructive testing of materials present a rapid expansion given by the increase in market demand caused by the desire to obtain an increasingly better quality of products. The continuous increase in quality demands leads directly to the need to implement and modernize the techniques, methods, and equipment used for quality control. Consequently, the need for product testing services has a rapid growth. This paper presents the strength and weaknesses of implementing IT tools for the estimation of the measurement uncertainty in testing laboratories and the impact of these tools on the economic part

scholarly journals The impact of FDI on environmental technology innovation from the perspective of environmental regulation

2020 ◽  
Vol 206 ◽  
pp. 02001
Author(s):  
Ziting Wei
Keyword(s):  
Environmental Regulation ◽  
Technology Innovation ◽  
Negative Impact ◽  
Positive Impact ◽  
Inhibitory Effect ◽  
Market Demand ◽  
Environmental Technology ◽  
Industrial Enterprises ◽  
Threshold Regression Model ◽  
The Impact

Based on the perspective of environmental regulation, this paper selects panel data of 30 provinces in China from 2011 to 2016, establishes Hansen panel threshold regression model, and investigates the impact of FDI on environmental technology innovation of industrial enterprises in China under the threshold of environmental regulation. The results show that FDI has a significant inhibitory effect on the environmental technological innovation of industrial enterprises; the effect has a significant dual threshold of environmental regulation, with the intensity of environmental regulation across the threshold, the negative impact of FDI gradually weakened; market demand and industry scale have a significant positive impact, the role of technological progress is not significant. The findings of this paper provide a certain reference for the rational use of environmental regulation policies, the maximization of FDI technology spillover, the promotion of environmental technology innovation of industrial enterprises, and the realization of “win-win” of environment and economy.

scholarly journals Learning Losses Caused by the Covid-19 Pandemic - A Significant Threat to Economic Development

2021 ◽  
Vol 4 (1) ◽  
pp. 92
Author(s):  
Tea Kasradze ◽  
Nino Zarnadze
Keyword(s):  
Economic Growth ◽  
Economic Development ◽  
International Organizations ◽  
Positive Impact ◽  
Secondary Data ◽  
Market Demand ◽  
Local Policy ◽  
Education Systems ◽  
Increase Productivity ◽  
The Impact

Numerous studies show that there is a positive correlation between education and the economic development of the country. Strong education systems have a positive impact not only on the success of individuals but also on the economy of the entire country. Graduates equipped with the skills required by the labor market can easily find a place in this market. Knowledge and skills relevant to market demand increase productivity have a positive impact on economic growth and development. Unfortunately, Covid Pandemic has severely damaged the education systems. Governments, scientists, and experts provide us with statistical information daily around the world about both the slowdown in economic growth as a whole and the problems of individual sectors of the economy. These are the problems and numbers that are already visible and it can be said that the losses are easily measurable. However, the damage caused to the economy by education systems affected by the pandemic will be felt by countries and humanity years later, nor will it be easy to calculate. The problem is even more difficult in poor and developing countries. This paper aims to study the impact of the Covid Pandemic on the education system and economy in Georgia. The research examines the reports and studies of various international organizations, analyzing the secondary data obtained from them. Local policy documents, government reports and regulations, and papers of different researchers have also been studied, conclusions have been made and relevant recommendations have been developed.

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