scholarly journals Dynamic Contract Design of Product-Service Supply Chain considering Consumers’ Strategic Behavior and Service Quality

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-25
Author(s):  
Dafei Wang ◽  
Tinghai Ren ◽  
Xueyan Zhou ◽  
Kaifu Yuan ◽  
Qingren He
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
Strategic Behavior ◽  
Market Competition ◽  
Rapid Development ◽  
Purchase Behavior ◽  
Service Supply Chain ◽  
Dynamic Contract ◽  
Product Service ◽  
Input Efficiency

With increasing market competition and rapid development of service economy, more and more enterprises are shifting from providing products or services to providing product-service systems (PSSs) that integrate products and services, in order to improve competitiveness and profitability. Meanwhile, consumers have strategic delayed purchasing behavior when purchasing the PSS and high requirements for service quality. This paper investigates the two-period pricing and service quality decisions of product-service supply chain (PSSC) considering consumers’ strategic behavior under decentralized and centralized scenarios. The equilibrium results are compared in two scenarios. In order to eliminate performance loss under the decentralized scenario, we design two-period dynamic contracts to coordinate the PSSC. Furthermore, numerical simulation is provided to verify the feasibility of the contracts. The following conclusions can be drawn: (1) the higher the service input-efficiency, the more beneficial for alleviating consumers’ strategic purchase behavior under two scenarios, but this mitigation effect is more obvious under the centralized scenario. (2) Compared with the centralized scenario, the service quality is lower, the two-period PSS sales prices are higher, and the two-period profit is lower under the decentralized scenario. The proportion of service valuation (accounts for the valuation of PSS) will promote the widening of the service quality gap under two scenarios, but in some cases, the service input-efficiency will weaken the promotion effect of the proportion of service valuation. (3) The design of the two-period combined contracts depends on the proportion of service valuation. When the proportion of service valuation is high, the “two-period revenue sharing + service-cost sharing” combined dynamic contract can achieve PSSC perfect coordination. However, when the proportion of service valuation is low, it is necessary to design complexity combined dynamic contract which can achieve PSSC perfect coordination.

scholarly journals Effects of channel encroachment on the software and service decisions in it supply chains

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Tinghai Ren ◽  
Nengmin Zeng ◽  
Dafei Wang ◽  
Shuwei Cheng
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
High Price ◽  
Software Developers ◽  
Sales Price ◽  
Software Developer ◽  
It Service ◽  
Extended Warranty ◽  
Service Supply Chain ◽  
Intensity Of Competition

<p style='text-indent:20px;'>Currently, many upstream software developers not only sell software through downstream service providers, but also directly sell it to clients. However, in the field of IT service supply chain management, there is a lack of research on the channel encroachment of software developers. In this study, we consider an IT service supply chain with a software developer, a service provider and client enterprises. Clients can either purchase the software (developed by the software developer) from the provider with a high price and additional pre-sale services, or directly purchase it from the developer with a low price but without pre-sale service. After purchasing the software, the clients can also purchase the extended warranty service from the developer. The study shows that the market size occupied by the developer and the intensity of competition between the two parties will neither affect the developer's product and service pricing decisions, nor influence the total demand for software products and extended warranty services, and thus will not impact his own profit. However, these factors will impact the provider's decisions for pre-sale service quality and software sales price, thereby affecting the provider's software demand and profit, and thus impact the performance of the supply chain. In addition, as the intensity of competition between both parties increases, the provider will simultaneously choose to reduce the pre-sales service quality and the software sales price to compete with the developer. Different from conclusions of the existing research on competition, we surprisingly observe that as the sensitivity of client enterprises to the extended warranty services price increases, both parties will increase the software price to compete. The encroachment of the developer will reduce the provider's software demand and profit, and thus lead to a decline in the performance of the supply chain. Therefore, the encroachment of the developer is an act of squeezing out partners by decreasing the profit of the provider, but without affecting his own profit.</p>

Product Service Supply-Chain Design

2014 ◽  
pp. 3219-3237
Author(s):  
Zhitao Xu ◽  
XG Ming ◽  
Tengyun Wu ◽  
Maokuan Zheng
Keyword(s):  
Supply Chain ◽  
Supply Chain Design ◽  
Service Supply Chain ◽  
Product Service

Status review and research strategies on product-service supply chain

2020 ◽  
Vol 234 (8) ◽  
pp. 1075-1086
Author(s):  
Zhitao Xu ◽  
Adel Elomri ◽  
Qin Zhang ◽  
Caijie Liu ◽  
Lin Shi
Keyword(s):  
Supply Chain ◽  
Service System ◽  
Complete Analysis ◽  
Future Research ◽  
Research Strategies ◽  
Product Service System ◽  
Holistic View ◽  
Service Supply Chain ◽  
Product Service ◽  
Service Resource

This study draws a holistic view of the supply chain with three service strategies – namely, after-sales service; maintenance, repair and operations; and the product-service system – by analysing over 71 articles in this field. In this investigation, the content analysis is used to scrutinize the research to establish the knowledge, reveal the research opportunities and propose research strategies. The supply chain for product-service system depends more heavily on the implementation of the cooperation, collaboration and integration principles in operation. However, a complete analysis reveals that those crucial principles did not embody in current literature. Current research also failed to discuss the service operation decisions by modelling the intricate relations among them in a broad product-service supply chain context. Thus, the future research directions include developing service demand forecasting models; combining the time-series methods and the causal methods; establishing service resource planning models; addressing the relations between service deliverables, service capacity and the service resource; and strengthening the quantitative evaluation of the product-service supply chain performance with a systemic view. Moreover, by addressing the principles of cooperation, collaboration and integration, the added values of this review are the proposed research strategies for integrated forecasting of product services, integrated product-service resource allocation and scheduling, and systematic performance evaluation of the product-service supply chain. The findings and the proposed research strategies develop an in-depth understanding of product-service supply chain applications and serve as a basis for future research.

Pricing and Service Quality Guarantee Decisions in Logistics Service Supply Chain with Fairness Concern

2018 ◽  
Vol 35 (05) ◽  
pp. 1850036 ◽  
Author(s):  
Ni Du ◽  
Qinglan Han
Keyword(s):  
Supply Chain ◽  
Service Quality ◽  
Optimal Decision ◽  
Service Market ◽  
Joint Decision ◽  
Logistics Service ◽  
Basic Model ◽  
Service Supply Chain ◽  
Fairness Concern ◽  
Quality Guarantee

Although existing contributions that explore service quality guarantee problem of a logistic service supply chain (LSSC) consider fairness concern behavior of one member, little attention is paid to considering the combination of members’ fairness concern and the joint decision of pricing and service quality guarantee in LSSC. Therefore, it is necessary to research how different fairness concern affects the joint decision of pricing and service quality guarantee in an LSSC. First considering a price and quality-sensitive logistics service market, a basic model without fairness concern of a customized LSSC is established. Then, a new model with fairness concern of a decentralized LSSC is constructed based on the basic model. The optimal decision of the LSSC with fairness concern is investigated in three cases. In each case, we analyze the effect of fairness concern on the optimal decision, and the expected profits and utilities. Finally, some numerical studies are shown to verify our theoretical analyses and some managerial insights are given.

Quality effort decision in service supply chain with quality preference based on quantum game

2015 ◽  
Vol 26 (07) ◽  
pp. 1550073 ◽  
Author(s):  
Cuihua Zhang ◽  
Peng Xing ◽  
Jianwei Wang
Keyword(s):  
Supply Chain ◽  
Nash Equilibrium ◽  
Service Quality ◽  
Service Provider ◽  
Optimal Strategies ◽  
Quantum Game ◽  
Quality Cost ◽  
Numerical Examples ◽  
Service Supply Chain ◽  
Changing Trend

Service quality preference behaviors of both members are considered in service supply chain (SSC) including a service integrator and a service provider with stochastic demand. Through analysis of service quality cost and revenue, the utility functions are established on service quality effort degree and service quality preference level in integrated and decentralized SSC. Nash equilibrium and quantum game are used to optimize the models. By comparing the different solutions, the optimal strategies are obtained in SSC with quality preference. Then some numerical examples are studied and the changing trend of service quality effort is further analyzed by the influence of the entanglement operator and quality preferences.

scholarly journals A Product Service Supply Chain Network Equilibrium Model considering Capacity Constraints

2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Yongtao Peng ◽  
Dan Xu ◽  
Yaya Li ◽  
Kun Wang
Keyword(s):  
Supply Chain ◽  
Equilibrium Model ◽  
Capacity Constraints ◽  
Service Systems ◽  
Network Equilibrium ◽  
Supply Chain Network ◽  
Service Flow ◽  
Service Supply Chain ◽  
Product Service ◽  
Product Service Systems

With the further development of manufacturing servitization, the supply chain established by enterprises has gradually evolved into a product service supply chain. The introduction of service flow has made supply chain management more complicated. In this paper, we build a product service supply chain network composed of raw material suppliers, service providers, manufacturing integrators, and customers. The equilibrium model for decision-makers at all levels is established by variational inequality. In particular, we emphasize the impact of product and service capacity constraints and changes in the product service integration ratio on network equilibrium. The results show that, while capacity constraints on production tend to stabilize and unify the market price, service-related capacity constraints polarize the customer pay price. That is to say, product capability constraints limit the quality of product service systems, while service capability constraints limit the types of product service systems. Furthermore, the introduction of service flow and integration with products creates a more closely networked relationship between the upper and lower layers of the product service supply chain, and an increase in the service proportion will increase the network equilibrium profit.

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