scholarly journals Joint Innovation Investment and Pricing Decisions in Retail Supply Chains with Customer Value

2021 ◽  
Vol 13 (3) ◽  
pp. 1309
Author(s):  
Jiali Qu ◽  
Benyong Hu ◽  
Chao Meng
Keyword(s):  
Supply Chain ◽  
Cooperative Game ◽  
Customer Value ◽  
Business Models ◽  
Value Added ◽  
Revenue Sharing ◽  
Nash Bargaining ◽  
Product Price ◽  
Pricing Decisions ◽  
Game Equilibrium

In the retail industry, customer value has become the key to maintaining competitive advantages. In the era of new retail, customer value is not only affected by the product price, but it is also closely related to innovations, such as value-added services and unique business models. In this paper, we study the joint innovation investment and pricing decisions in a retailer–supplier supply chain based on revenue sharing contracts and customer value. We first find that, in the non-cooperative game, equilibrium only exists in the supplier Stackelberg game. However, revenue sharing contracts cannot coordinate the supply chain in the non-cooperative game. By considering supply chain members’ bargaining power, we find that there exists a unique equilibrium for the Nash bargaining product. In addition, revenue sharing contracts can coordinate the supply chain and achieve the optimal consumer surplus. When the supply chain is coordinated, supply chain profit is allocated to the supply chain members based on their bargaining powers.

Revenue Sharing Contract of Green Supply Chain under Manufacturer Risk-Aversion

2014 ◽  
Vol 697 ◽  
pp. 482-487
Author(s):  
Shi Ying Jiang ◽  
Chun Yan Ma
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Risk Aversion ◽  
Stackelberg Game ◽  
Wholesale Price ◽  
Revenue Sharing ◽  
Green Supply Chain ◽  
Game Model ◽  
Product Price ◽  
Revenue Sharing Contract

Background on two stages green supply chain consisting of a manufacturer and a retailer, considering the degree of risk aversion and product greenness, consumer preferences and other factors, the centralized decision-making game model and manufacturer-leading Stackelberg game model are established.Then two game models are compared. The interaction of product greenness, wholesale price, product price,and risk aversion utility for manufacturers and retailers are also disscussed. Finally, the revenue sharing contract is applied to coordinate the green supply chain . The results show that:(1) In the centralized decision-making model, there is a critical value of the product green degree; (2)In manufacturer-leading Stackelberg game model, the higher the green degree of the product, the higher the manufacturer's wholesale price,and the wholesale price increases as risk aversion degree of manufacturers improves;(3)The revenue sharing contract can coordinate this type of green supply chain under manufacturers risk-averse.

Can collaborative buffering strategies reduce distribution costs while improving product returns?: A case of an Asian e-retailer

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Bhavin Shah ◽  
Gaganpreet Singh
Keyword(s):  
Customer Value ◽  
Time Windows ◽  
Value Added ◽  
Revenue Sharing ◽  
Content Type ◽  
Profit Margins ◽  
Return Policies ◽  
Buffer Time ◽  
Proposed Model ◽  
The Impact

PurposeIn order to achieve competitive advantage over the physical marketplace, the e-retailers are insisted on endowing with lenient return policies. The piece-wise returns-and-reordering process incurs excessive buffering and unwanted logistics costs which raises overall fulfillment charges. The objective of this study is to re-design e-retail distribution policy by providing temporal storage at logistics service provides' (LSP) location. The impact of recurrent returns on pricing and profit margins are also investigated over time continuum.Design/methodology/approachA framework is developed to reduce the non-value added (NVA) storage and distribution efforts by providing collaborative buffering between LSP and e-retailer. The knapsack based buffering approach is tested and compared with traditional e-retail distribution practices. The revenue sharing concept is mathematically modelled and implemented in GAMS, which finally validated through multiple return scenarios.FindingsThe proposed model outperforms the existing one under all scenarios with different configuration settings of re-ordering, profit margins, and buffer time windows. The distribution cost is found, linearly related to the necessary product buffering space. The findings help to re-design sustainable return policies for individual products so that maximum customer value can be yield with minimum costs.Research limitations/implicationsThis study helps to determine the NVA efforts incurred while storing and delivering multi-time returned products to ensure desired service levels. The revenue sharing model provides pricing strategies for e-retail practitioners deciding which product should store in what quantity for how much time at the shipping agency location so that it fulfils the re-ordering at least waiting and sufficient buffering.Originality/valueThe proposed model extends the role of LPSs as temporary buffer providers to reduce returns-and-reordering fulfilment efforts in the e-retail network. This Collaborative framework offers an opportunity to amend the distribution contracts and policies time by time that enhances e-retailer's performance and customer satisfaction.

A BUSINESS MODEL ANALYSIS FOR THE SUPPLY CHAIN CONVERGENT OF SERVICES

2009 ◽  
Vol 06 (01) ◽  
pp. 97-116 ◽  
Author(s):  
MYUNG-HWAN RIM ◽  
HYUN-SOO HAN ◽  
YEONG-WHA SAWNG
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Business Model ◽  
Customer Value ◽  
Business Models ◽  
Business Strategies ◽  
Industry Convergence ◽  
Digital Convergence ◽  
Business Application ◽  
Managerial Implications

In this paper, we explore the merging of supply chains between media and telecommunications as an example of business application of industry convergence. The goal of this study is to provide managerial insight into the various facets of convergence of supply chains so that companies can effectively exploit business opportunities presented by the accelerating process of digital convergence and related technological innovations. In this study, the focus is set on business models, rather than business strategies as such, since digital convergence is an emerging sector that deserves independent attention as a new business concept. We formulated a series of propositions, related to customer value, value network, and supply chain efficiency, using frameworks borrowed from the existing business model literature and value creation theories for Internet business. Managerial implications are discussed and applied to DMB (Digital Multimedia Broadcasting), a new telecom-broadcasting convergence business model, recently introduced in South Korea.

Research on Strategies of Pricing and Coordinating in Reverse Supply Chain for Remanufacturing

2012 ◽  
Vol 203 ◽  
pp. 459-463 ◽  
Author(s):  
Zhan Feng Zhou
Keyword(s):  
Supply Chain ◽  
Cooperative Game ◽  
Revenue Sharing ◽  
Marginal Effect ◽  
Game Model ◽  
Reverse Supply Chain ◽  
Revenue Sharing Contract ◽  
Optimal Pricing Strategy ◽  
Applied Game Theory ◽  
Cooperative Game Model

Based on the remanufacturing reverse supply chain consisted of single retailer and single manufacturer, this paper applied game theory to establish a non-cooperative game and cooperative game model and got optimal pricing strategy by solving this two kinds of game model. By comparing the total profits of reverse supply chain in every game model, a conclusion was draw that non-cooperative game model led to profit loss and double marginal effect. In order to solve the problems, revenue sharing contract was used to coordinate the reverse supply chain and coordinating strategy was got. The results show that revenue sharing contract can increase the total profits of the reverse supply chain, while at the same time meet the respective interests of retailer and manufacturer and coordinate the reverse supply chain.

scholarly journals Practice-Based Learning as Lever for Successfully Adapting Supply Chain 4.0 Technology: Foreground People

2020 ◽  
Author(s):  
Henning de Haas ◽  
John Bang Mathiasen
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chains ◽  
Learning Organization ◽  
Customer Value ◽  
Business Models ◽  
Research Question ◽  
Operational Efficiency ◽  
The Way

SCM 4.0 is expected to lead to increased automation and transparency throughout the supply chain; thus, opportunities for operational efficiency and digital enabled business models [1], [2]. However, the SCM 4.0 impacts the decision-making towards higher complexity [3]. Technology-wise many companies have adapted SCM 4.0. This paper claims that organizational and leadership matters have not yet gone through similar transition; Actually, we can neither see any changes in the way companies organize supply chains nor in how they facilitate practice-based learning of employees and leaders. With SCM 4.0 technologies, an effective supply chain is not just a question of transforming components to finished goods. Rather, the contemporary SCM organizations need a strong transdisciplinary practice-based learning agenda to be able to deliver customer value [4], [5]. With the purpose of understanding transdisciplinary levers for practice-based learning in SCM, the study builds on two cases of implementation of SCM 4.0 technologies, exploring how the case companies have managed the transformation from a classic 2.0 to a 4.0 practice-based learning organization. The research question guiding the study is: to what extent can practise-based learning be a lever for adapting SCM 4.0?

scholarly journals Low carbon joint strategy and coordination for a dyadic supply chain with Nash bargaining fairness

2022 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Jianxin Chen ◽  
Lin Sun ◽  
Tonghua Zhang ◽  
Rui Hou
Keyword(s):  
Supply Chain ◽  
Cost Sharing ◽  
Bargaining Power ◽  
Unit Cost ◽  
Revenue Sharing ◽  
Nash Bargaining ◽  
Low Carbon ◽  
Joint Decision ◽  
Effort Level ◽  
Fairness Concern

<p style='text-indent:20px;'>In the paper, fairness concern criterion is utilized to explore the coordination of a dyadic supply chain with a fairness-concerned retailer (acting as a newsvendor), who is committed to low carbon efforts. Two models are developed for stochastic demand disturbances in the forms of multiplicative case and additive case, respectively. Firstly, the optimal joint decision of the retailer and the supply chain are proposed in two scenarios, i.e., decentralized decision and the centralized decision. Secondly, in order to realize channel coordination, the contract of revenue sharing combined with the mechanism of low-carbon cost sharing is designed. Moreover, the influences of the retailer's fairness concern and bargaining power on the joint decision and the contract parameters are also investigated. Finally, numerical examples are given to illustrate the theoretical results and some suggestions to supply chain management are also provided. The results show that the revenue sharing contract can make the supply chain achieved coordination with the cost sharing mechanism of low-carbon efforts. Furthermore, the optimal low-carbon effort level and ordering quantity decrease in terms of fairness-concerned parameter and Nash bargaining power parameter, which increases in unit cost. However, the optimal pricing makes the opposite change.</p>

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