Strategic credit sales to express retail under asymmetric default risk and stochastic market demand

Omega ◽  
2020 ◽  
pp. 102253
Author(s):  
Kai Wang ◽  
Peiqi Ding ◽  
Ruiqing Zhao
Keyword(s):  
Default Risk ◽  
Market Demand ◽  
Stochastic Market

scholarly journals The Incentive Model in Supply Chain with Trade Credit and Default Risk

Complexity ◽  
2019 ◽  
Vol 2019 ◽  
pp. 1-11
Author(s):  
Hong Cheng ◽  
Yingsheng Su ◽  
Jinjiang Yan ◽  
Xianyu Wang ◽  
Mingyang Li
Keyword(s):  
Supply Chain ◽  
Asymmetric Information ◽  
Moral Hazard ◽  
Private Information ◽  
Default Risk ◽  
Trade Credit ◽  
Uncertain Demand ◽  
Market Demand ◽  
Incentive Contract ◽  
Risk Neutral

Trade credit is widely used for its advantages. However, trade credit also brings default risk to the manufacturer due to the uncertain demand. And moral hazard may aggravate the default risk. The purpose of this paper is to investigate the role of moral hazard in trade credit and explore incentive contract under uncertain demand and asymmetric information. We consider a two-echelon supply chain consisting of a risk-neutral retailer ordering a single product from a risk-neutral manufacturer. Market demand is stochastic and is influenced by retailer’s sales effort which is his private information. Incentive theory is used to develop the principal-agent model and get the incentive contract from the manufacturer’s perspective. Results show that the retailer will reduce his effort level to get more profit and the manufacturer’s profit will be reduced, in the case of asymmetric information. Facing this result, the manufacturer will reduce the order quantity in incentive contract to lessen his losses. Numerical examples are provided to illustrate all these theoretical results and to draw managerial insights.

Capacity Management in Reconfigurable Manufacturing Systems With Stochastic Market Demand

Manufacturing ◽  
2002 ◽  
Author(s):  
Farshid Maghami Asl ◽  
A. Galip Ulsoy
Keyword(s):  
Inventory Control ◽  
Manufacturing Systems ◽  
Optimal Solution ◽  
Capacity Management ◽  
Management Problem ◽  
Reconfigurable Manufacturing Systems ◽  
Reconfigurable Manufacturing ◽  
Market Demand ◽  
Management Scenario ◽  
Stochastic Market

An optimal solution, based on Markov Decision Theory, is presented for the capacity management problem in Reconfigurable Manufacturing Systems with stochastic market demand with a time delay between the time capacity change is ordered and the time it is delivered. The optimal policy in this paper is presented as optimal boundaries representing the optimal capacity expansion and reduction levels. The effects of change in the cost function parameters and the delay time on the optimal boundaries are presented for a capacity management scenario. The major differences between this research and the ones in inventory control lie in two folds. One is the fact that unlike inventory, capacity levels can be reduced according to the market demand. The other one is the novel approach presented in this paper to solve the delay problem which unlike the inventory control does not account for the cumulative unmet demand as a decision factor.

From Batch to Continuous Production Through Micro Process Technology: Chances and Challenges

2008 ◽  
Author(s):  
Stephan Scholl
Keyword(s):  
Continuous Production ◽  
High Viscosity ◽  
Batch Processes ◽  
Manufacturing Processes ◽  
Market Demand ◽  
Process Technology ◽  
Intermediate Phases ◽  
Stochastic Market

The majority of the manufacturing processes in the chemical, pharmaceutical, food or cosmetics industry is operated as batch processes. This is economically advantageous in cases where - capacities per product are low, in the range of 10 kg/a to 1000 t/a - many different educts have to be mixed and processed for the product, i.e. a recipe-based manufacturing, - many different but similar products have to be produced, - educts have to be fed at different times and with varying quantities, - educts show problematic properties such as high viscosity, solids or stickiness, - problematic processing behaviour such as fouling, foaming, viscous intermediate phases or undesired precipitation, is found, - manufacturing has to meet a sometimes stochastic market demand or - the process consist of only a few process steps like mixing, heating, reaction and cooling.

Order decision making based on different statement strategies under stochastic market demand

2013 ◽  
Vol 22 (2) ◽  
pp. 171-190 ◽  
Author(s):  
Jiangtao Wang ◽  
Liwen Wang ◽  
Fei Ye ◽  
Xuejun Xu ◽  
Jianjun Yu
Keyword(s):  
Decision Making ◽  
Market Demand ◽  
Stochastic Market

scholarly journals Investment Timing and Capacity Choice under Uncertainty

2014 ◽  
Vol 2014 ◽  
pp. 1-9
Author(s):  
Xiumei Lv ◽  
Shiqin Xu ◽  
Xiaoling Tang
Keyword(s):  
Real Option ◽  
Investment Decisions ◽  
Value Functions ◽  
Market Demand ◽  
Strategic Investment ◽  
Investment Timing ◽  
Choice Under Uncertainty ◽  
Capacity Choice ◽  
The Face ◽  
Stochastic Market

This paper examines strategic investment between two firms that compete not only for investment timing but also for capacity under stochastic market demand. The value functions of real option for the follower, the dominant leader, and the preemptive leader are derived and their investment decisions are investigated. It finds that both firms will delay investment and the delayed margin of the follower will surpass that of the leader under greater uncertainty. Furthermore, both firms will provide more outputs in the face of increasing uncertainty and the growth rate of the follower’s capacity will exceed that of the leader’s. In addition, this paper finds that the follower will end up with a larger capacity than the leader.

Optimal Capacity Management With Stochastic Market Demand and Imperfect Information

2003 ◽  
Author(s):  
Farshid Maghami Asl ◽  
A. Galip Ulsoy
Keyword(s):  
Imperfect Information ◽  
Capacity Management ◽  
Management Problem ◽  
Market Demand ◽  
Economic Stability ◽  
New Approach ◽  
Optimal Capacity ◽  
Markov Decision ◽  
Reconfigurable Capacity ◽  
Stochastic Market

Over-capacity has been a major problem in the world economy over the past decade. Reconfigurable capacity, and optimal capacity management policies, can contribute to increased economic stability. This research introduces a new approach to optimal capacity management for a firm faced with uncertainties and imperfect information of the market demand. It presents an optimal policy for the capacity management problem in a firm facing stochastic market demand, based on Markov decision theory. To make the approach more realistic, it is assumed that the firm has imperfect information of its stochastic market demand, and can only observe its previous sales. Optimal policies are presented as boundaries representing the optimal capacity expansion and reduction levels.

scholarly journals A Study on Supply Chain Emission Reduction Level Based on Carbon Tax and Consumers’ Low-Carbon Preferences under Stochastic Demand

2019 ◽  
Vol 2019 ◽  
pp. 1-20 ◽  
Author(s):  
Liang Wang ◽  
Tingjia Xu ◽  
Longhao Qin
Keyword(s):  
Supply Chain ◽  
Emission Reduction ◽  
Carbon Tax ◽  
Wholesale Price ◽  
Concave Function ◽  
Revenue Sharing ◽  
Market Demand ◽  
Low Carbon ◽  
Order Quantity ◽  
Stochastic Market

This article focuses on the level of supply chain emission reduction, taking into account consumers’ low-carbon preferences, stochastic market demand, and carbon tax policy. By introducing the emission reduction penalty mechanism and adopting reverse derivation method, it derives the revenue model of the retailer and the manufacturer in decentralized and centralized supply chain when the supply chain reduces emissions or is not under stochastic market demand. The research results are as follows. (i) The optimal retailer’s revenue is strictly monotonous increasing with respect to the consumers’ low-carbon preferences in the decentralized supply chain. However, in the centralized supply chain, the optimal revenue of the retailer and the manufacturer are strictly monotonously decreasing of the consumers’ low-carbon preferences respectively. (ii) The retailer’s revenue is a concave function of the order quantity, and there exists a unique order quantity that can maximize retailer’s revenue. The manufacturer’s revenue is a concave function of the wholesale price, and there exists a unique wholesale price that can maximize manufacturer’s revenue. (iii) When consumers’ low-carbon preferences are given, there is an optimal emission reduction level that maximizes the overall revenue of the supply chain. Furthermore, as the carbon tax increases, the optimal emission reduction level gradually rises. (iv) As the level of emission reduction in the supply chain increases, the range of the revenue sharing coefficient becomes larger, and it is easier for supply chain members to reach a revenue sharing contract. However, when consumers’ low-carbon preferences and carbon tax increase, the opposite is true.

PERLINDUNGAN HUKUM TERHADAP KARYA SENI BATIK YANG BELUM TERDAFTAR MENURUT UNDANG-UNDANG NOMOR 28 TAHUN 2014 TENTANG HAK CIPTA

2018 ◽  
Vol 1 (1) ◽  
Author(s):  
Inggrit Fernandes
Keyword(s):  
Intellectual Property ◽  
Property Rights ◽  
Cultural Heritage ◽  
Intellectual Property Rights ◽  
Rapid Growth ◽  
Economic Value ◽  
Legal Protection ◽  
Property Law ◽  
Market Demand ◽  
Work Of Art

Batik artwork is one of the treasures of the nation's cultural heritage. Batik artwork is currently experiencing rapid growth. The amount of interest and market demand for this art resulted batik artwork became one of the commodities in the country and abroad. Thus, if the batik artwork is not protected then the future can be assured of a new conflict arises in the realm of intellectual property law. Act No. 28 of 2014 on Copyright has accommodated artwork batik as one of the creations that are protected by law. So that this work of art than as a cultural heritage also have economic value for its creator. Then how the legal protection of the batik artwork yaang not registered? Does this also can be protected? While in the registration of intellectual property rights is a necessity so that it has the force of law to the work produced

Institutional Environment, Entrepreneurial Self-Efficacy and Entrepreneurial Intention of Company Employees

1970 ◽  
Vol 3 (1) ◽  
pp. 1-9
Author(s):  
Devi Angrahini Anni Lembana ◽  
Yu Yu Chang ◽  
Wen Ke Liang
Keyword(s):  
Self Efficacy ◽  
Institutional Environment ◽  
Practical Experience ◽  
Entrepreneurial Intention ◽  
Entrepreneurial Intentions ◽  
New Venture ◽  
Hierarchical Regression ◽  
Market Demand ◽  
Extrinsic Factors ◽  
Intrinsic Factors

From the intentionality-based view, individuals' actual behaviors to initiate a new venture is driven by their entrepreneurial intentions. Company employees have accumulated professionalism and practical experience, which both enable them to discover some unmet market demand and industrial gaps. However, in establishing a new business, not everyone with certain knowledge or expertise has the desire to become an entrepreneur. Prior research has shown that entrepreneurial intentions are under the profound influences of intrinsic factors and extrinsic factors. On the one hand, entrepreneurial self-efficacy is one of the key psychological states that makes someone dare to initiate entrepreneurial activities. Institutional environment, on the other hand, can either enhance and hinder an individuals' entrepreneurial motivation by offering incentives or causing barriers. Little work has been done to understand how the institutional environment and entrepreneurial self-efficacy jointly affect company employees' intention to quit their job and start an enterprising career. By using hierarchical regression on a sample of 325 Indonesian company employees, this paper shows that the entrepreneurial cognition and entrepreneurial self-efficacy are positively related to employees' entrepreneurial intentions. Also, entrepreneurial self-efficacy strengthens the effect of normative Approval on entrepreneurial intention, whereas the regulatory Support from Government is detrimental to company employees' intention to start a new venture regardless the entrepreneurial self-efficacy is high or low.

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