scholarly journals Product bundling and advertising strategy for a duopoly supply chain: a power-balance perspective

Author(s):  
Sarat Kumar Jena ◽  
Abhijeet Ghadge

AbstractThe paper studies product bundling in a duopoly supply chain network under the influence of different power-balance structures, bundling decisions and advertising efforts on total supply chain profit. Mathematical models comprising two manufacturers and a single retailer are developed to capture the impact of bundling policy and advertisement strategy under three power-balance structures, namely Manufacturer Stackelberg, Retailer Stackelberg and Vertical Nash. Following game theory models and numerical examples, the study found that the total profit of the supply chain is undifferentiated under the manufacturer Stackelberg and Vertical Nash case in the manufacturer bundling and retailer bundling strategies. However, total supply chain profit under manufacturer bundling strongly dominates under retailer bundling in Retailer Stackelberg and Vertical Nash, and remains valid under multiple settings of market size, price elasticity and advertising elasticity. It is also found that manufacturer bundling is significantly affected by advertising effort compared to retailer bundling. The study contributes to the literature interfacing supply chain and marketing by studying bundling policy and advertising strategy simultaneously for homogenous products, under various power-balance structures and price competition.

2012 ◽  
Vol 02 (07) ◽  
pp. 21-28
Author(s):  
Maryam Mahdikhani ◽  
Asadolah Khahande Karnama ◽  
Milad Beirami

Electronic Business (e-Business) is revolutionizing the way of communication between Internal and external stakeholders in an organization. E-business can lead to competitive advantage and at the same time, increase profitability. There are several factors resulting on the success of e-business. One of the most important factors is Security. It is thus clear that information technology (IT) and the emerging e-business application and related to security are gaining a pivotal role in managing supply chain. This paper examines the impact of E-business on supply chain on information security aspect among other types of supply chains. The current paper reviews security and supply chain literatures and then investigates framework of information technology in supply chain management. Areas of supply chain which need security attention are then proposed in e-supply chain information security framework and this will be considered as a guideline for managers to find out if their e-supply chain network is secure enough. Through the paper, one realizes that Information Security in every information based-system will be vital.


2020 ◽  
Vol 11 (4) ◽  
pp. 38-53
Author(s):  
Robin Singh Bhadoria ◽  
Neha Sharma ◽  
Manish Kumar Pandey

Modern supply chain management systems have evolved into a complex and critical system. Thus, it has grown more interesting to verify the source of products and its visibility as it is moving through the supply chain network. The application of blockchain technology and Internet of Things (IoT) are likely to affect the supply chain management objectives such as cost, quality, speed, dependability, risk reduction, sustainability, and flexibility. This paper presented the concept of how blockchain technology and IoT can help to achieve supply chain objectives. This research focuses on the impact of blockchain on current and future supply chain management systems.


2019 ◽  
Vol 31 (3) ◽  
pp. 467-490 ◽  
Author(s):  
Asama Alglawe ◽  
Andrea Schiffauerova ◽  
Onur Kuzgunkaya ◽  
Itad Shiboub

Purpose The purpose of this paper is to explore the impact of the cost of quality (COQ) expenditure allocations on a capacitated supply chain (SC) network. Design/methodology/approach This paper proposes a non-linear optimization model which integrates the opportunity cost (OC) (i.e. customer satisfaction cost), into the COQ with consideration of the QL in the supply chain network design decisions. In addition, it examines the effect of considering an investment at each SC echelon to ensure the best overall QL. A numerical example is presented to illustrate the behavior of the model. Findings The results show how the QL, COQ and facility location decisions change when incorporating the OC, investments and transportation costs into the SC model. Originality/value The novelty of this paper is that it considers the effect of OC, investment at each echelon and transportation costs on SC design by minimizing the overall spending on the COQ. These issues have not been explored, and for that reason, this paper contributes to the understanding of the critical factors that optimizes the SC COQ.


2012 ◽  
Vol 2012 ◽  
pp. 1-23 ◽  
Author(s):  
Armin Jabbarzadeh ◽  
Seyed Gholamreza Jalali Naini ◽  
Hamid Davoudpour ◽  
Nader Azad

This paper studies a supply chain design problem with the risk of disruptions at facilities. At any point of time, the facilities are subject to various types of disruptions caused by natural disasters, man-made defections, and equipment breakdowns. We formulate the problem as a mixed-integer nonlinear program which maximizes the total profit for the whole system. The model simultaneously determines the number and location of facilities, the subset of customers to serve, the assignment of customers to facilities, and the cycle-order quantities at facilities. In order to obtain near-optimal solutions with reasonable computational requirements for large problem instances, two solution methods based on Lagrangian relaxation and genetic algorithm are developed. The effectiveness of the proposed solution approaches is shown using numerical experiments. The computational results, in addition, demonstrate that the benefits of considering disruptions in the supply chain design model can be significant.


Logistics ◽  
2021 ◽  
Vol 6 (1) ◽  
pp. 2
Author(s):  
Takaki Nagao ◽  
Hiromasa Ijuin ◽  
Tetsuo Yamada ◽  
Keisuke Nagasawa ◽  
Lei Zhou

Background: COVID-19 has disrupted and adversely affected supply chains worldwide. A global supply chain network that considers disruptions is needed. This study strategically analyzes the economic and structural effects of disruption on a global supply chain network with customs duty and the trans-pacific partnership (TPP) agreement. Methods: We present a cost minimization model which helps in understanding the difficulty of supplying materials or products to factories or customers if the supplier’s cities are facing disruption. This enables us to model and evaluate simultaneous considerations of supplier disruption, customs duty, and TPP in redesigning a global supply chain network. This network is modeled and formulated using integer programming, disruption scenarios, and a sensitivity analysis for customs duty. Results: Regarding the impact of disruptions on suppliers, two patterns emerge in the reconfigured network: direct changes due to supplier disruptions and indirect changes due to factory relocation. The sensitivity analysis for customs duty shows that the TPP has a positive impact on cost maintained, even in the presence of disruptions. Conclusions: Suppliers should be switched depending on the scale of disruption; when many distant suppliers need to be switched, the factory should be relocated to the country where these suppliers are located.


Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-13 ◽  
Author(s):  
Jesus Felix Bayta Valenzuela ◽  
Xiuju Fu ◽  
Gaoxi Xiao ◽  
Rick Siow Mong Goh

The topology of a supply chain network affects the impacts of disruptions in it. We formulate a network-based measure of the impact of a disruption loss in a supply chain propagating downstream from an originating node. The measure takes into account the loss profile of the originating node, the structure of the supply network, and the resilience of the network components. We obtain an analytical expression for the impact measure under a beta-distributed initial loss (generalizable to any continuous distribution supported on the interval 0,1), under a breakthrough scenario (in which a fraction of the initial production loss reaches a focal company downstream as opposed to containment upstream or at the originating point). Furthermore, we obtain a closed-form solution for a supply chain network with a k-ary tree topology; a numerical study is performed for a scale-free network and a random network. Our proposed approach enables the evaluation of potential losses for a focal company considering its supply chain network structure, which may help the company to plan or redesign a robust and resilient network in response to different types of disruptions.


Author(s):  
Fang Yu ◽  
Chun Zhang ◽  
Yongsheng Yang

This research aims to prompt agents to improve their strategies initiatively in order to decrease carbon dioxide emissions and enhance green factors during production and consumption processes. An incentive negotiation mechanism is proposed for agents in supply chains to improve their strategies. Multiple items, multiple attributes, and multiple echelons are involved in the proposed model. In addition, this research takes both the commerce and the environmental attributes into account. The environmental attributes were transformed into rewards or penalty by setting reward factors or penalty factors, and were taken into account during the calculation of the profits. The simulation results show that the proposed model was feasible to solve the complex negotiation problems, and had a good performance. The green factors of agents in the green supply chain network are increased when the agents have low initial green factors. Moreover, the proposed model can effectively reduce the carbon dioxide emissions as well. The proposed model can be seen as a “win–win” solution from the perspective of both business and environmental protection. The total profit of the green supply chain network is improved, and the harm to the environment is decreased as well.


2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Jian Wang ◽  
Xueyan Wang ◽  
Mingzhu Yu

This paper studies a supply chain network design model with price competition. The supply chain provides multiple products for a market area in multiple periods. The model considers the location of manufacturers and retailers and assumes a probabilistic customer behavior based on an attraction function depending on both the location and the quality of the retailers. We aim to design the supply chain under the capacity constraint and maximize the supply chain profit in the competitive environment. The problem is formulated as a mixed integer nonlinear programming model. To solve the problem, we propose two heuristic algorithms—Simulated Annealing Search (SA) and Particle Swarm Optimization (PSO)—and numerically demonstrate the effectiveness of the proposed algorithms. Through the sensitivity analysis, we give some management insights.


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