scholarly journals Effect of service quality on software sales and coordination mechanism in IT service supply chain

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Tinghai Ren ◽  
Kaifu Yuan ◽  
Dafei Wang ◽  
Nengmin Zeng
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Service Provider ◽  
Sales Price ◽  
Software Developer ◽  
It Service ◽  
Service Supply Chain ◽  
Decentralized Decision Making ◽  
Total Profit

<p style='text-indent:20px;'>Currently, the upstream software developer usually cooperates with the downstream service provider to sell software and related services to client enterprises. Furthermore, the quality of pre-sale services provided by the provider has significant impact on software sales and on the performance of IT service supply chain (ITSSC). However, the existing research on IT service supply chain management (ITSSCM) lacks attention to this issue. In this study, we consider an ITSSC with a software developer, a service provider and client enterprises. Two scenarios are discussed in this study. Our study finds that the quality of pre-sale services provided by the provider and the price of extended warranty service (EWS) provided by the developer (in centralized decision-making (CDM)) are both higher than those in decentralized decision-making (DDM); when the sensitivity of clients to the software price is lower than a certain critical value, the software sales price (in CDM) is unexpectedly higher than that in DDM; however, when it is higher than the certain value, the software sales price (in CDM) is lower than that in DDM. Due to the double marginal effect between the developer and the provider, the total profit of ITSSC (in DDM) is always lower than that in CDM. By providing a combined coordination contract based on "guiding price <inline-formula><tex-math id="M1">\begin{document}$ + $\end{document}</tex-math></inline-formula> service cost sharing <inline-formula><tex-math id="M2">\begin{document}$ + $\end{document}</tex-math></inline-formula> product revenue sharing", not only the total profit of ITSSC can be increased, but also the profit of ITSSC members can be Pareto improved.</p>

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>

scholarly journals The More Supply Chain Control Power, the Better? A Comparison among Four Kinds of Cooperation Models

2015 ◽  
Vol 2015 ◽  
pp. 1-19 ◽  
Author(s):  
Weihua Liu ◽  
Shuqing Wang ◽  
Donglei Zhu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chain Coordination ◽  
Wholesale Price ◽  
The Other ◽  
Order Quantity ◽  
Control Power ◽  
Decentralized Decision Making ◽  
Optimal Value ◽  
Total Profit

This paper introduces the parameter of supply chain control power into existing supply chain coordination models and explores the impacts of control power on the profits of manufacturer, retailer, and the overall supply chain under four modes of decision-making, including the decentralized decision-making dominated by manufacturer, the decentralized decision-making dominated by retailer, centralized decision-making, and Nash negotiation decision-making. Some significant conclusions are obtained. Firstly, supply chain control power does have great impact on the supply chain profits. The profit of the whole supply chain with centralized decision-making is higher than those of the other three modes, while the overall profit of supply chain with decentralized decision-making is superior to the profit when retailer and manufacturer dominate the supply chain together. Secondly, with decentralized decision-making, for manufacturer and retailer, it is beneficial to gain the control powers of the supply chain; however, control power has an optimal value, not the bigger, the better. Thirdly, under certain circumstances, order quantity will increase and the wholesale price will decrease when control power is transferred from manufacturer to retailer. In this case, the total profit of supply chain dominated by retailer will be greater than that dominated by manufacturer.

scholarly journals The Dynamics of Brand-Driven Quality Improvement Decision-Making in Multi-Small-Supplier Agri-Food Supply Chain: The Case of China

2021 ◽  
Vol 13 (19) ◽  
pp. 10815
Author(s):  
Jing Mu ◽  
Jing Li ◽  
Yaze Li ◽  
Chao Liu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
System Dynamics ◽  
Food Quality ◽  
Closed Loop ◽  
Brand Value ◽  
System Behavior ◽  
Decentralized Decision Making ◽  
Core Brand

This paper develops a system dynamics framework for the closed-loop agri-food brand supply chain (AFBSC) with multiple small farmer suppliers and one core brand manufacturer, and investigates the influences of various factors including brand effort, quality elasticity, price elasticity, revenue sharing, and the number of suppliers on the system behavior. The results show: (i) food quality is determined by all farmer suppliers, who might choose hitchhiking with the prisoner’s dilemma game in a decentralized decision-making mode; (ii) brand effort to improve brand value for food quality is mainly made by the core brand manufacturer, who presents a goal-seeking system dynamics (SD) manner with oscillation behavior around the expected quality of consumers; (iii) whether farmer suppliers or brand manufacturers, the centralized decision-making mode is more useful for them to increase revenue than the decentralized one; furthermore, the shared centralized decision-making mode is most useful for them to obtain more revenue, and the brand manufacturer is still the biggest beneficiary.

scholarly journals Coordination Analysis of Revenue Sharing in E-Commerce Logistics Service Supply Chain With Cooperative Distribution

SAGE Open ◽  
2019 ◽  
Vol 9 (3) ◽  
pp. 215824401987053 ◽  
Author(s):  
Yaoguang Zhong ◽  
Fangfang Guo ◽  
Zhiqiang Wang ◽  
Huajun Tang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Supply Chains ◽  
Revenue Sharing ◽  
Two Stage ◽  
Logistics Service ◽  
Service Supply Chain ◽  
Decentralized Decision Making ◽  
Decision Making System ◽  
Service Supply Chains

With the rapid development of e-commerce, logistics distribution has become the bottleneck of its development. It is urgent to study how to optimize the cooperation between e-commerce platforms and logistics service providers. Based on Stackelberg game theory, this research first studies the decision making of two-stage logistics service supply chains consisting of the e-commerce mall and the logistics service provider without cooperative distribution, in which decentralization and centralization are analyzed, respectively. Then, it is extended to the decision making of three-stage logistics service supply chains consisting of e-commerce malls, express delivery companies, and terminal distributors. The results show that the profit, sales volume, and logistics service effort of the centralized decision-making system are higher than those of the decentralized decision-making system, regardless of the two-stage or three-stage logistics service supply chain. Therefore, it is vital to formulate a reasonable profit distribution scheme based on revenue-sharing contract to achieve the cooperation among the partners of logistics service supply chain, so as to achieve a win-win situation in which all of their profits increase. Finally, a numerical example is presented to verify the results, and some issues are proposed for future research.

scholarly journals Self-Operated Store or Franchised Store? Optimal Decisions for Online-to-Offline Supply Chain with a Demand Shift

2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Feng Wei ◽  
Yan Zhu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Coordination Mechanism ◽  
Transfer Payment ◽  
Selling Price ◽  
Supply Chain System ◽  
Optimal Decisions ◽  
Decentralized Decision Making ◽  
Total Profit ◽  
Demand Shifts

Mutual shifts in offline and online demand have become the norm in supply chain operations. The online-to-offline (O2O) supply chain system consists of a platform vendor, a physical store, and a product. The platform vendor sells the product directly online and governs either the centralized decision-making of a self-operated store or the decentralized decision-making of a franchised store offline. In this study, supply chain decision models with and without demand shifts are constructed to obtain optimal wholesale and selling prices and to maximize profit. The coordination mechanism under decentralized decision-making is designed to optimize the O2O supply chain, and the validity and applicability of the model are verified by numerical simulation. Results show that, regardless of whether a store is self-operated or franchised, the total profit of the system increases, and online and offline prices depend on a range of demand shifts. With an increased proportion of online demand shifts, the offline selling price and total profit of the system increase, whereas the online selling price and profit of the platform vendor decrease under decentralized decision-making. When the fixed transfer payment fee is within a certain range, a two-part-tariff contract can effectively coordinate the supply chain. This study not only contributes to the theoretical literature on O2O supply chain systems but also provides practical decision-making support for managers.

scholarly journals Supply-Chain Pricing and Coordination for New Energy Vehicles Considering Heterogeneity in Consumers’ Low Carbon Preference

2020 ◽  
Vol 12 (4) ◽  
pp. 1306 ◽  
Author(s):  
Bengang Gong ◽  
Xuan Xia ◽  
Jinshi Cheng
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Marginal Effect ◽  
Low Carbon ◽  
Green Consumers ◽  
Decentralized Decision Making ◽  
New Energy ◽  
Total Profit ◽  
The Impact ◽  
New Energy Vehicles

Given consumers’ willingness to pay different prices for new energy vehicles (NEVs) and traditional vehicles, we construct a utility model of ordinary and green consumers. We establish pricing game models for centralized and decentralized decisions in an NEV’s supply chain in order to study the impact of changes in consumers’ low carbon preference heterogeneity on supply chain pricing and member profit. The results show that consumers’ low carbon preferences and the ratio of green consumers increases with the ex-factory and selling prices of NEVs. An increase in the percentage of green consumers under centralized decision-making will reduce the total profit of the supply chain. Manufacturers’ profits under decentralized decision-making are greater than the dealers’ profits, and the sum of the two members’ profits under decentralized decision-making is less than the total profit of the supply chain under centralized decision-making. We design a revenue-sharing contract to eliminate the double marginal effect.

scholarly journals Optimal Operational Decision Making of Manufacturers and Authorized Remanufacturers with Patent Licensing under Carbon Cap-and-Trade Regulations

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-22
Author(s):  
Biyu Liu ◽  
Zhongsheng Hua ◽  
Qinhong Zhang ◽  
Haidong Yang ◽  
Athanasios Migdalas
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Carbon Emissions ◽  
Environmental Benefits ◽  
Cap And Trade ◽  
Royalty Rate ◽  
Yield Rate ◽  
Decentralized Decision Making ◽  
Total Profit ◽  
Operational Decision Making

Constrained by production capacity and the pressure to reduce emissions, many original equipment manufacturers (OEMs) authorize third-party remanufacturers (TPRs) to remanufacture patented products. We investigate the operational decisions of OEMs and authorized TPRs under carbon cap-and-trade regulations in a two-echelon supply chain. We first formulate an operational decision model for OEMs before a TPR enters. Then, for the cases of centralized and decentralized decision making, we formulate an operational decision-making model for the TPR and, subsequently, establish one for the OEM after the TPR enters. We further analyze the effects of carbon emissions cap, trading price of carbon permits, yield rate, and consumer willingness to pay (WTP) on optimal decisions. Our results indicate: whether TPRs accept authorization remanufacturing depending on the ratio of carbon emissions cap to carbon emissions for producing per remanufactured product; royalty rate is negatively affected by trading price of carbon permits and per remanufactured product’ carbon emissions other than that for per new product, and can offset the threat caused by TPRs; the implementation of carbon cap-and-trade regulations causes OEMs to charge TPRs lower royalty rate; centralized decision making increases the total profit of the supply chain and delivers superior environmental benefits. As yield rate and WTP increase, the total profit increases, increasingly sensitive to WTP.

scholarly journals Financing and pricing strategies of construction supply chain under capital constraint

2021 ◽  
Vol 336 ◽  
pp. 09004
Author(s):  
Yuxin Wen ◽  
Linyi Wu ◽  
Fengmin Yao
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Stackelberg Game ◽  
Distribution Model ◽  
Pricing Strategies ◽  
External Financing ◽  
Pricing Decision ◽  
Decentralized Decision Making ◽  
Internal Financing ◽  
Decision Making Model

Affected by factors such as cost, the financial constraints faced by the supply chain are becoming more and more severe. This paper constructs a financing and pricing decision-making model for the construction supply chain under capital constraints, and uses Stackelberg game theory to analyze and obtain the best financing and pricing strategy for the construction supply chain under the internal and external financing modes. The study found that when centralized decision-making is adopted, there is a profit distribution model that makes the profits obtained by construction developers and contractors greater than the profits obtained in decentralized decision-making; the internal financing model of the construction supply chain is better than external financing, and can enable the construction supply chain get higher profits.

Factors that impact Quality during the Transportation of Tomatoes

2021 ◽  
pp. 516-532
Author(s):  
Saurav Negi ◽  
Neeraj Anand ◽  
Shantanu Trivedi
Keyword(s):  
Decision Making ◽  
Factor Analysis ◽  
Supply Chain ◽  
State Government ◽  
Food Processing ◽  
Himachal Pradesh ◽  
North India ◽  
Current Status ◽  
Primary Data

This paper examines the factors that impact the quality of tomatoes during the transportation through the supply chain. This is motivated by the criticality transportation in north India region. Primary data was collected through a survey using a questionnaire with responses from 140 transporters from the Himachal Pradesh and Uttarakhand states of India. The data were analyzed using factor analysis to identify the factors that are impacting the quality of tomatoes during the transportation stage. Based on the analysis, three factors were identified that impact quality: Operational, Preservation and Infrastructure. The identification of these factors will benefit the stakeholders involved in the process of decision-making, like the state government, food processing units, transporters, and the farmers. This will help us to understand the current status of transportation and related issues and challenges which enable them to make better planning and management to improve efficiency in the transportation stage of the supply chain.

Factors that impact Quality during the Transportation of Tomatoes

2017 ◽  
Vol 7 (1) ◽  
pp. 49-63 ◽  
Author(s):  
Saurav Negi ◽  
Neeraj Anand ◽  
Shantanu Trivedi
Keyword(s):  
Decision Making ◽  
Factor Analysis ◽  
Supply Chain ◽  
State Government ◽  
Food Processing ◽  
Himachal Pradesh ◽  
North India ◽  
Current Status ◽  
Primary Data

This paper examines the factors that impact the quality of tomatoes during the transportation through the supply chain. This is motivated by the criticality transportation in north India region. Primary data was collected through a survey using a questionnaire with responses from 140 transporters from the Himachal Pradesh and Uttarakhand states of India. The data were analyzed using factor analysis to identify the factors that are impacting the quality of tomatoes during the transportation stage. Based on the analysis, three factors were identified that impact quality: Operational, Preservation and Infrastructure. The identification of these factors will benefit the stakeholders involved in the process of decision-making, like the state government, food processing units, transporters, and the farmers. This will help us to understand the current status of transportation and related issues and challenges which enable them to make better planning and management to improve efficiency in the transportation stage of the supply chain.

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