scholarly journals Study on Supply Chain considering Anticipated Regret under Price Discount

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Nian Zhang ◽  
Bin Li
Keyword(s):  
Supply Chain ◽  
Revenue Sharing ◽  
Sensitivity Coefficient ◽  
Profit Sharing ◽  
Anticipated Regret ◽  
Price Discount ◽  
Price Discounts ◽  
Revenue Sharing Contract ◽  
Decentralized Decision Making ◽  
The Impact

The aim of this study is to research the impact of consumer regrets on the supply chain caused by the company’s “discount promotion.” This paper introduces the theory of anticipated regret and price discount into the supply chain. By quoting the negative utility formula of consumers’ anticipated regret under price discount, it quantitatively describes the demand function of the original product and the discount product. The model under centralized and decentralized decision making is constructed, and revenue-sharing contract is adopted to coordinate the supply chain. The conclusions are as follows. (1) Affected by the anticipated regret under the price discount, the price of the product increases first and then decreases with the regret sensitivity coefficient and consumer heterogeneity sensitivity increases. In addition, the price under the leadership structure of the manufacturer is the highest. (2) Price discounts enhance consumers’ perception of anticipated regret. Under the stimulation of price discounts, the price of products increases first and then decreases. (3) The revenue-sharing contract could not coordinate the supply chain, and the introduction of a profit-sharing mechanism is achieved the Pareto improvement of the supply chain.

scholarly journals Supply Chain Decision-Making and Coordination considering Anticipated Regret under Price Discount

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-14
Author(s):  
Jie Jian ◽  
Huipeng Li ◽  
Nian Zhang ◽  
Jiafu Su
Keyword(s):  
Supply Chain ◽  
Sensitivity Coefficient ◽  
Pricing Strategy ◽  
Market Demand ◽  
Anticipated Regret ◽  
Consumer Heterogeneity ◽  
Price Discount ◽  
Demand Functions ◽  
Homogeneous Product ◽  
The Impact

The increasing homogeneous product market has made more competition among companies to focus on improving customers’ experience. In order to get more competitive advantages, companies often launch discount products to attract consumers. However, stimulated by discount products, the perception of anticipated regret is becoming stronger, which is an inevitable issue in front of companies with price discount strategy. Considering the impact of anticipated regret for discount products, this paper quantitatively describes the utility functions and deduces the demand functions of original price products and discount products. The theoretical analysis and numerical simulation are used to analyze centralized and decentralized models of supply chain for discount products. On its basis, the revenue-sharing contract is designed to optimize the profits of supply chain. This paper finds that the price of products increases first and then decreases with the increase of regret sensitivity coefficient and consumer heterogeneity. When the regret sensitivity coefficient and consumer heterogeneity are lower, companies in the supply chain can adopt the “skimming pricing” strategy in order to obtain more profits. When the regret sensitivity coefficient and consumer heterogeneity increase, companies in the supply chain can adopt “penetrating pricing” strategies to stimulate market demand. For high regret consumers, manufacturers can adopt a “commitment advertising” strategy to promise price and quality, and retailers can adopt a “prestige pricing” strategy to reduce consumer perception of regret. In response to products with higher differences in consumer acceptance, manufacturers can adopt a “differentiated customization” strategy to meet different types of consumer demand and retailers can adopt a “differential pricing” strategy for precise marketing.

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.

scholarly journals Coordinating Contracts for Two-Echelon Supply Chain with Price and Promotional Sensitive Demand

2016 ◽  
Vol 10 (7) ◽  
pp. 132
Author(s):  
Hooman Abdollahi ◽  
Mohammad Talooni
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Supply Chain Coordination ◽  
Revenue Sharing ◽  
Profit Sharing ◽  
Promotional Effort ◽  
Revenue Sharing Contract ◽  
Pricing Decision ◽  
The Cost

<p class="zhengwen"><span lang="EN-GB">In this paper three coordinating contracts in supply chain namely (i) revenue-sharing contract (ii) cost-sharing contract (iii) profit-sharing contract are proposed for two echelon supply chain coordination perspective under promotion and price sensitive demand. In our model buyer makes the promotional decision and undertakes the promotional sales effort cost. It is shown that in decentralized channel the results are sub-optimal. It is found analytically that the revenue-sharing contract coordinates pricing decision but not promotional decision for all values of the promotional effort cost. It is also found that the cost-sharing contract fails to coordinate channel. The profit-sharing contract is demonstrated to coordinate both the pricing and the promotional decisions in the channel.</span></p>

scholarly journals Supply chain contracting coordination for fresh products with fresh-keeping effort

2017 ◽  
Vol 117 (3) ◽  
pp. 538-559 ◽  
Author(s):  
Qi Zheng ◽  
Petros Ieromonachou ◽  
Tijun Fan ◽  
Li Zhou
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Wholesale Price ◽  
Revenue Sharing ◽  
Optimal Decision ◽  
Decision Variable ◽  
Coordination Problem ◽  
Content Type ◽  
Revenue Sharing Contract ◽  
Decentralized Decision Making

Purpose Fresh product loss rates in supply chain operations are particularly high due to the nature of perishable products. The purpose of this paper is to maximize profit through the contract between retailer and supplier. The optimized prices for the retailer and the supplier, taking the fresh-keeping effort into consideration, are derived. Design/methodology/approach To address this issue, the authors consider a two-echelon supply chain consisting of a retailer and a supplier (i.e. wholesaler) for two scenarios: centralized and decentralized decision making. The authors start from investigating the optimal decision in the centralized supply chain and then comparing the results with those of the decentralized decision. Meanwhile, a fresh-keeping cost-sharing contract and a fresh-keeping cost- and revenue-sharing contract are designed. Numerical examples are provided, and managerial insights are discussed at the end. Findings The results show that the centralized decision is more profitable than the decentralized decision; a fresh product supply chain (FPSC) can only be coordinated through a fresh-keeping cost- and revenue-sharing contract; the optimal retail price, wholesale price and fresh-keeping effort can all be achieved; and the profit of a FPSC is positively related to consumers’ sensitivity to freshness and negatively correlated with their sensitivity to price. Research limitations/implications This research is based on the assumption that demand is relatively stable. It has not addressed when demand is stochastic. Practical implications The findings would be useful for managers in fresh food sector in terms of how to deal with suppliers in order to maximize total profit while also provide freshest food to the customers. Originality/value Few studies have considered fresh-keeping effort as a decision variable in the modelling of supply chain. In this paper, a mathematical model for the fresh-keeping effort and for price decisions in a supply chain is developed. In particular, fresh-keeping cost-sharing contract and revenue-sharing contract are examined simultaneously in the study of the supply chain coordination problem.

scholarly journals Coordination of Supply Chain with a Dominant Retailer under Demand Disruptions

2014 ◽  
Vol 2014 ◽  
pp. 1-10 ◽  
Author(s):  
Jian Li ◽  
Xiaofang Liu ◽  
Jun Wu ◽  
Fengmei Yang
Keyword(s):  
Supply Chain ◽  
Revenue Sharing ◽  
Sales Promotion ◽  
Coordination Mechanism ◽  
Coordination Model ◽  
Revenue Sharing Contract ◽  
Research Questions ◽  
Original Contract ◽  
Dominant Retailer ◽  
The Impact

We develop a coordination model of a one-manufacturer multi-retailers supply chain with a dominant retailer. We consider the impact of a dominant retailer on the market retail price and his sales promotion opportunity and examine how the manufacturer can coordinate such a supply chain by revenue-sharing contract after demand disruptions. We address the following important research questions in this paper. (i) How do we design an appropriate revenue-sharing contract to coordinate the supply chain with a dominant retailer without demand disruptions? (ii) When demand is disrupted with variations in market scale and price sensitive coefficient, can the original contract still be valid? (iii) How do the demand disruptions affect the coordination mechanism under different disruption scenarios and how should the new contract change? Finally, we generate important insights by both analytical and numerical examples.

scholarly journals Supply Chain Decision Analysis of Community E-Commerce Platform under Different Power Structures: Considering the Influence of Value Cocreation

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Ziyu Liu ◽  
Yaping Li
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Service Providers ◽  
Stackelberg Game ◽  
Sensitivity Coefficient ◽  
Power Structures ◽  
Effort Level ◽  
Decentralized Decision Making ◽  
Value Cocreation ◽  
The Impact

In order to explore the impact of different decision-making methods on the profits of various entities in the supply chain of the community e-commerce platform, this paper adopts the method of the Stackelberg game. For the community e-commerce platform supply chain composed of suppliers, community e-commerce platforms, and grid station service providers, considering the degree of supplier value cocreation efforts, this paper studies the optimal decisions under centralized decision-making, supplier-led decentralized decision-making, and community e-commerce platform-led decentralized decision-making, respectively. The results show that the supply chain obtains the highest profit in centralized decision-making; under decentralized decision-making, the dominant party will get higher profits; and the supplier value cocreation sensitivity coefficient is positively correlated with sales price, value cocreation effort level, and total supply chain value. The results are helpful to improve the competitiveness of the community e-commerce platform supply chain in the market and are of great significance to the long-term development of the community e-commerce industry.

scholarly journals Carbon Emission Reduction Decision and Revenue-Sharing Contract with Consumers’ Low-Carbon Preference and CER Cost under Carbon Tax

2021 ◽  
Vol 2021 ◽  
pp. 1-11
Author(s):  
Chao-qun Han ◽  
Hua-ying Gu ◽  
Li-hui Sui ◽  
Chang-peng Shao
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Carbon Tax ◽  
Revenue Sharing ◽  
Low Carbon ◽  
Carbon Emission Reduction ◽  
Revenue Sharing Contract ◽  
Theoretical And Numerical Analysis ◽  
The Impact

Since the tax of carbon emission is popular and consumers are exhibiting low-carbon preference, the green manufactures have to spend more extra cost on investing carbon emission reduction (CER) technology to decrease the carbon emission. To encourage the manufacture’s CER investment efforts, this paper explores the impact of carbon tax, CER cost, and consumers’ low-carbon preference on low-carbon decision-making and designs a revenue-sharing contract (RS) by constructing Stackelberg models. Based on the theoretical and numerical analysis, this paper finds that the supply chain would benefit from the increment of consumer’s environmental awareness but be depressed by the increase of the CER investment cost factor. Additionally, there exists a unique optimal carbon tax to make CER degree the maximum. Furthermore, RS can effectively promote manufacturers to reduce carbon emissions and also improve the supply chain efficiency.

scholarly journals A Green Closed-Loop Supply Chain Coordination Mechanism Based on Third-Party Recycling

2019 ◽  
Vol 11 (19) ◽  
pp. 5335 ◽  
Author(s):  
Jiafu Su ◽  
Chi Li ◽  
Qingjun Zeng ◽  
Jiaquan Yang ◽  
Jie Zhang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Closed Loop ◽  
Profit Sharing ◽  
Coordination Mechanism ◽  
Third Party ◽  
Marginal Effect ◽  
Closed Loop Supply Chain ◽  
Decentralized Decision Making ◽  
The Impact

Taking an environment-friendly green closed-loop supply chain as the research object, this work established a two-stage closed-loop supply chain game model. Considering the influence of the environmental protection input on the whole supply chain, there are different decisions among the participants in the supply chain, and the different choices will have impacts on the benefits of the whole supply chain when manufacturers select a closed-loop supply chain model of third-party recycling. Hence, this work compared and analyzed the impact of centralized decision-making and decentralized decision-making on the returns and pricing strategies of each participant. Finally, an optimized cooperative mechanism decision model considering a cost profit sharing contract was further designed. The model is conducive to obtaining the maximum profit value in centralized decision-making and avoids the negative impact of a “double marginal effect” on supply chain income in decentralized decision-making, and finally, improves the overall coordination and profit of a green closed-loop supply chain. The numerical examples are conducted to verify the effectiveness and practicality of the proposed models. This work provides a helpful decision support and guidance for enterprises and the government on the used products recycling decisions to better manage the green closed-loop supply chain.

scholarly journals Coordinating a Green Agri-Food Supply Chain with Revenue-Sharing Contracts Considering Retailers’ Green Marketing Efforts

2020 ◽  
Vol 12 (4) ◽  
pp. 1289 ◽  
Author(s):  
Li Cui ◽  
Siwei Guo ◽  
Hao Zhang
Keyword(s):  
Supply Chain ◽  
Food Supply ◽  
Agricultural Sector ◽  
Revenue Sharing ◽  
Green Marketing ◽  
Personal Health ◽  
Food Supply Chain ◽  
Revenue Sharing Contract ◽  
The Cost ◽  
The Impact

Serious environmental issues have drawn the attention of the agricultural sector. Consumers’ concerns about their personal health and food safety have stimulated the demand for green agri-food, which has also made it important to focus on the green agri-food supply chain to improve the food quality and reduce the associated environmental concerns. This paper discusses coordination issues of the green agri-food supply chain under the background of farmers’ green farming and retailers’ green marketing, and the impact of a revenue-sharing contract on key decisions of supply chain participants. On the basis of the two-echelon green agri-food supply chain composed of a farmer and a retailer, a revenue-sharing contract was established that takes the cost of farmer’s green farming and retailer’s green marketing into account. Through the comparison of the model results, it is concluded that the revenue-sharing contract is beneficial to not only increase the greening level, but also improve both the farmer’s profit and the retailer’s profit. Moreover, the effectiveness of the revenue-sharing contract is positively correlated with consumers’ sensitivity to the greening level. Finally, the conclusion is verified by numerical simulation and some management suggestions are given.

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