scholarly journals Return Strategies and Online Product Customization in a Dual-Channel Supply Chain

2019 ◽  
Vol 11 (12) ◽  
pp. 3482 ◽  
Author(s):  
Rong Zhang ◽  
Jiatong Li ◽  
Zongsheng Huang ◽  
Bin Liu
Keyword(s):  
Supply Chain ◽  
Consumer Satisfaction ◽  
Channel Selection ◽  
Return Policy ◽  
Dual Channel ◽  
Product Customization ◽  
Dual Channel Supply Chain ◽  
Money Back Guarantee

This paper investigates in a dual-channel supply chain which return strategy is better for the manufacturer that considers the consumers’ utility. We find that a manufacturer prefers offering a Money-Back Guarantee (MBG) as long as the net salvage value of the returned product is positive in a channel. However, the return strategy of the retailer is more affected by the return policy of another channel than the net salvage value. In order to reduce online returns, we propose the online product customization channel, and then, we examine the choice of return policy and the manufacturer’s channel selection. We show that the demand and profit of the manufacturer will increase to a certain extent when opening an online customization channel. However, compared to the case where both channels provide an MBG, the implementation of online customization may hurt the manufacturer’s profits with the increase in consumer satisfaction in indirect channels.

scholarly journals A Cross-Channel Return Policy in a Green Dual-Channel Supply Chain Considering Spillover Effect

2020 ◽  
Vol 12 (6) ◽  
pp. 2171
Author(s):  
Huanyong Zhang ◽  
Huiyuan Xu ◽  
Xujin Pu
Keyword(s):  
Supply Chain ◽  
Spillover Effect ◽  
Pricing Strategy ◽  
Green Supply Chain ◽  
Green Products ◽  
Return Policy ◽  
Dual Channel ◽  
Willingness To Buy ◽  
Differential Pricing ◽  
Dual Channel Supply Chain

With the advent of the era of “New Retail”, many manufacturers and retailers have begun to provide cross-channel return services to increase competitiveness. Our study takes return policy into a green dual-channel supply chain, wherein a manufacturer creates and sells green products simultaneously. We investigate the pricing and greening strategies for the supply chain players in the cases of providing and not providing cross-channel return service by employing the Stackelberg model under the hypothesis of a consistent pricing strategy. By comparing the equilibrium results of two cases, we find that the retailer will cooperate with the manufacturer to employ the cross-channel return policy when the spillover effect is greater than a threshold. Additionally, the green level of products is higher than before. The threshold decreases with consumers’ sensitivity to green products, which implies that the manufacturer is motivated to conduct marketing programs to enhance consumers’ willingness to buy green products. Moreover, we propose a contract to coordinate the supply chain. Finally, we discuss the scenarios if the supply chain implements a differential pricing strategy. Interestingly, the green level and the profits of the whole supply chain are greater than that under a consistent pricing strategy. However, the profits of the retailer are lower than profits in the other scenario, which is not beneficial to creating a stable green supply chain.

scholarly journals Price and Service Competition in a Dual-Channel Supply Chain with Product Customization

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-35
Author(s):  
Jian Wang ◽  
Huijuan Jiang
Keyword(s):  
Supply Chain ◽  
Price Competition ◽  
Service Cost ◽  
Service Levels ◽  
Service Competition ◽  
Direct Sales ◽  
Dual Channel ◽  
Product Customization ◽  
Customized Products ◽  
Dual Channel Supply Chain

This paper considers a dual-channel supply chain with product customization. One manufacturer and one retailer are involved. The online direct sales channel sells standard and customized products, and the offline retail channel sells standard products. The prices and service levels of products sold via different channels are differentiated, and the customization level which influences the customization cost and choices of customers is decided by the manufacturer. Three game models are proposed: the manufacturer Stackelberg (MS) model, the retailer Stackelberg (RS) model, and the Nash game model. The price and service decisions of the players are derived. Meanwhile, a service-cost-sharing contract is designed for the MS model. The impacts of price and service competition, service cost, and customers sensitivity to the customization level on the optimal decisions are investigated. Through the numerical analysis, we find that, among the three models, the manufacturer Stackelberg model is the most beneficial game structure for the overall supply chain but has the largest revenue gap between the two members. Second, under price competition and service competition, the manufacturer should differentiate the prices and services for direct sales standard products and customized products according to his market status. Third, the manufacturer should increase customization expenditures to construct his customization production line and provide more diversified products when consumers are more sensitive to product customization.

scholarly journals Optimization algorithm and simulation of supply chain coordination based on cross-border E-commerce network platform

2021 ◽  
Vol 2021 (1) ◽  
Author(s):  
Deli Wang ◽  
Wuwei Li
Keyword(s):  
Supply Chain ◽  
Consumer Satisfaction ◽  
Rapid Development ◽  
Supply Chain Coordination ◽  
Cross Border ◽  
Dual Channel ◽  
Decentralized Decision Making ◽  
Network Platform ◽  
Dual Channel Supply Chain ◽  
Offline Channels

AbstractWith the rapid development of cross-border e-commerce, the improvement of consumer satisfaction has become the focus of cross-border e-commerce platform optimization. Relying on advanced algorithm technology, it can realize the accurate and efficient matching between massive information and users, which is conducive to improving the user experience. Based on the consideration of consumer satisfaction, this paper constructs a dual channel supply chain composed of cross-border suppliers, cross-border e-commerce enterprises, retailers and consumers and studies the revenue and cost sharing contract of the supply chain under the conditions of centralized decision and decentralized decision. The research shows that cross-border e-commerce enterprises can choose to form revenue and expenditure sharing contracts through online and offline channels, optimize decentralized decision-making, and achieve win–win cooperation among supply chain entities.

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