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 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.

System dynamics-based model for supply chain organizational collaboration

2020 ◽  
pp. 1-11
Author(s):  
Wenhan Xu ◽  
Hongguang Bo ◽  
Yinglian Chen
Keyword(s):  
Supply Chain ◽  
Standard Deviation ◽  
System Dynamics ◽  
Dispersion Coefficient ◽  
Current Model ◽  
Distribution Center ◽  
Market Demand ◽  
Average Value ◽  
Collaboration Model ◽  
The Impact

In order to explore the impact of the system-driven supply chain, collaborative operations, and organizational characteristics on supply chain operational performance, this paper based on the system dynamics method to simulate the established information collaborative supply chain model, analyze market demand data, inventory before and after the supply chain sharing The changes of inventory fluctuations in the supply chain and related calculations are compared with the simulation results under the current model to prove the importance of implementing information collaboration in the supply chain of a large retailer-led supply chain. The research in this paper shows that with the supply chain information collaboration model, the average value of the manufacturer’s order quantity has dropped by 30.4%. Affected by this, the dispersion coefficient has also dropped from 0.76 to 0.6, and the average number of orders in the distribution center has also dropped by 12.2%; With the supply chain information synergy model, the average value of the raw material inventory of manufacturers has dropped significantly, from 3400 in the current model to 2500 in the information synergy model, a decrease of 27%, the standard deviation has also decreased by 57%, and the dispersion coefficient has dropped from 0.98 to 0.50; The standard deviation rate of the inventory of the distribution center is 30%; from the perspective of the overall retail supply chain, the inventory has fallen by 14%, the standard deviation has fallen by 34%, and the dispersion coefficient has dropped from 0.76 in the current model to the information collaboration model. 0.6, it can be seen that the mode of supply chain information coordination has a great effect on reducing supply chain costs and improving supply chain efficiency.

scholarly journals The Impact of Price Comparison Service on Pricing Strategy in a Dual-Channel Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-13 ◽  
Author(s):  
Qi Xu ◽  
Zheng Liu ◽  
Bin Shen
Keyword(s):  
Supply Chain ◽  
Numerical Study ◽  
Profit Maximization ◽  
Pricing Strategy ◽  
Optimal Pricing ◽  
Pricing Strategies ◽  
Price Comparison ◽  
Dual Channel ◽  
Dual Channel Supply Chain ◽  
The Impact

Recently, price comparison service (PCS) websites are more and more popular due to its features in facilitating transparent price and promoting rational purchase decision. Motivated by the industrial practices, in this study, we examine the pricing strategies of retailers and supplier in a dual-channel supply chain influenced by the signals of PCS. We categorize and discuss three situations according to the signal availability of PCS, under which the optimal pricing strategies are derived. Finally, we conduct a numerical study and find that in fact the retailers and supplier are all more willing to avoid the existence of PCS with the objective of profit maximization. When both of retailers are affected by the PCS, the supplier is more willing to reduce the availability of price information. Important managerial insights are discussed.

scholarly journals Supply Chain Investment in Carbon Emission-Reducing Technology Based on Stochasticity and Low-Carbon Preferences

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-18
Author(s):  
Shan Yu ◽  
Qiang Hou
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Emission ◽  
Equilibrium Strategy ◽  
Market Demand ◽  
Low Carbon ◽  
Carbon Emission Reduction ◽  
Dynamic Perspective ◽  
The Cost ◽  
The Impact

Due to excessive greenhouse gas emissions, carbon emission-reducing measures are urgently needed. Important emission-reduction measures mainly include carbon trading and low-carbon cost subsidies. Comprehensive consideration of these two policies is a research hotspot in the field of low-carbon technology investment. Based on this background, this paper considers the impact of consumer low-carbon preferences on market demand and the impact of uncertainty in carbon emission-reduction behaviour. We construct a stochastic differential game model with upstream and downstream enterprises based on cost-sharing coordination under a cost subsidy. From a dynamic perspective, this paper researches the optimal equilibrium strategy and evolution characteristics of the joint emission-reduction mechanism in a supply chain. This paper discusses the sensitivity of the parameters and uses numerical simulation to verify the impact of each parameter on the emission-reduction decision-making activities of stakeholders after introducing the cost subsidy. The results show that a cost subsidy policy can promote carbon emission-reduction investment and supply chain profit. Thus, it is important to strengthen technical cooperation and exchange among enterprises.

scholarly journals Pricing Strategies in Dual-Channel Supply Chain with a Fair Caring Retailer

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-23 ◽  
Author(s):  
Lufeng Dai ◽  
Xifu Wang ◽  
Xiaoguang Liu ◽  
Lai Wei
Keyword(s):  
Supply Chain ◽  
Stackelberg Game ◽  
Pricing Strategy ◽  
Pricing Strategies ◽  
Equilibrium Solutions ◽  
Channel Competition ◽  
Dual Channel ◽  
Fairness Concerns ◽  
Dual Channel Supply Chain ◽  
The Impact

Manufacturers add online direct channels that inevitably engage in channel competition with offline retail channels. Since price is an important factor in consumers' choice of purchasing channel, pricing strategy has become a popular topic for research on dual-channel competition and coordination. In contrast to previous research on pricing strategies based on the full rationality of members, we focus on the impact of retailers' fairness concerns on pricing strategies. In this study, the hybrid dual-channel supply chain consists of one manufacturer with a direct channel who acts as the leader and a retailer who acts as the follower. First, we use the Stackelberg game approach to determine the equilibrium pricing strategy for a fair caring retailer. Simultaneously, we consider a centralized dual-channel supply chain as the benchmark for a comparative analysis of the efficiency of a decentralized supply chain. Furthermore, we study pricing strategies when the retailer has fairness concerns and determine the complete equilibrium solutions for different ranges of the parameters representing cross-price sensitivity and fairness. Finally, through numerical experiments, the pricing strategies, the profit and utility of the manufacturer and retailer, and the channel efficiency of the supply chain are compared and analysed for two scenarios. We find that fairness concerns reduce the manufacturer's profits, while for the most part, the retailers’ profit can be improved; however, the supply chain cannot achieve complete coordination.

scholarly journals Analysis of the Impact of Different Forecasting Techniques on the Inventory Bullwhip Effect in Two Parallel Supply Chains with a Competition Effect

2020 ◽  
Vol 2020 ◽  
pp. 1-28
Author(s):  
Xigang Yuan ◽  
Xiaoqing Zhang ◽  
Dalin Zhang
Keyword(s):  
Supply Chains ◽  
Market Share ◽  
Bullwhip Effect ◽  
Sensitivity Coefficient ◽  
The Self ◽  
Price Sensitivity ◽  
Market Demand ◽  
Competition Effect ◽  
The Impact ◽  
Forecasting Techniques

This paper studies the impact of different forecasting techniques on the inventory bullwhip effect in two parallel supply chains with the competition effect, which is in contrast to the situation of a single product in a serial supply chain. In particular, this paper constructs two parallel supply chains, each of which includes one manufacturer and one retailer. Moreover, the market demand is impacted by the self-price sensitivity coefficient, the cross-price sensitivity coefficient, the market share, and the demand shock. We then assumed that the retailer can forecast market demand by using different forecasting techniques (i.e., the moving average technique (MA), the exponential smoothing technique (ES), and the minimum mean square error technique (MMSE)). We constructed the quantity model of the bullwhip effect and the inventory bullwhip effect. Finally, we analyzed the impact of different forecasting techniques and market share on the inventory bullwhip effect. We analyzed the conditions under which the retailers should choose different types of forecasting techniques on the basis of the inventory bullwhip effect. The results show that the MMSE forecasting technique can reduce the lead-time demand forecast error to the largest extent, and the inventory bullwhip effect can obtain the lowest level using the MMSE method: retailer-1 can reduce the inventory bullwhip effect by using the MA technique, when the self-price sensitivity coefficient, the price autoregressive coefficient, and the probabilities associated with customers choosing retailer-1’s product are very low.

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 Joint Dynamic Innovation and Pricing Decisions for the ODM Supply Chain

2021 ◽  
Vol 2021 ◽  
pp. 1-16
Author(s):  
Xin Wang
Keyword(s):  
Supply Chain ◽  
Optimal Strategies ◽  
Nash Bargaining ◽  
Quality Level ◽  
Selling Price ◽  
Market Demand ◽  
Original Design ◽  
Price Relationship ◽  
Design Innovation ◽  
The Impact

More and more companies in the supply chain choose the cooperation mode of original design and manufacturing (ODM). This paper investigates the problems of the joint design innovation and pricing strategies for the ODM supply chain by considering the impact of the dynamic of quality level on market demand. First, applying differential game theory, optimal strategies for design innovation, and pricing under decentralized and centralized scenarios are obtained. At the same time, the optimal strategies under the two decision-making scenarios are compared and analyzed. Second, a two-part tariff contract is introduced to coordinate the decentralized ODM supply chain. Finally, we further establish a Nash bargaining model among members of the supply chain. It is found that, in a centralized system, the design innovation efforts, product quality levels, and supply chain profits in the decentralized decision scenario are lower than that in the centralized decision scenario, but the selling price relationship in both scenarios depends on the parameters of the operating system.

scholarly journals Optimal Channel Strategy for a Fresh Produce E-Commerce Supply Chain

2021 ◽  
Vol 13 (11) ◽  
pp. 6057
Author(s):  
Qian Zheng ◽  
Manman Wang ◽  
Feng Yang
Keyword(s):  
Supply Chain ◽  
Channel Model ◽  
Fresh Produce ◽  
Selection Strategy ◽  
Market Demand ◽  
Strategy Research ◽  
The Sustainable Development ◽  
Dual Channel ◽  
Offline Channels ◽  
The Impact

As an increasing number of firms move to omnichannel operation for business sustainability, it is also necessary for fresh produce firms to adopt an omnichannel model by integrating online and offline channels. We focus on a fresh produce supply chain consisting of a supplier who sells online directly and a physical store retailer. The purpose of this paper is to explore the optimal channel selection strategy considering the fresh-keeping efforts of supply chain members. Specifically, we examine the conditions under which the supply chain members should cooperate to adopt the deliver-from-store (DFS) model and further investigate the impact of consumers’ freshness sensitivity and offline hassle cost on supply chain members’ sales model options. Several important conclusions are shown as follows. First, the retailer’s profit increases with the increasing freshness sensitivity in the dual-channel model, while it decreases if consumers are sufficiently sensitive to freshness in the DFS model. Second, if adopting the DFS model, online demand and total market demand expand, and the performance of the supplier and the retailer heavily depends on the size of the commission rate. Third, there always exists a win–win situation with an appropriate range of commission rate when the consumer’s hassle cost is large. This paper contributes to the omnichannel strategy research of fresh produce supply chain management and the results provide management insights for the sustainable development of the fresh produce industry in the omnichannel retailing environment.

Sign in / Sign up

Export Citation Format

Share Document