Dynamic pricing decision in the two-echelon supply chain with manufacturer's advertising and dominant retailer

Author(s):  
Fangxu Ren
2021 ◽  
Vol 336 ◽  
pp. 09005
Author(s):  
Yingluo Yan ◽  
Fengmin Yao

More and more companies are beginning to realize that incorporating corporate social responsibility (CSR) and sustainable development into supply chain strategies and operations can bring them more competitive advantages. In the case that the manufacturer or retailer performs CSR through profit donation, the pricing decision-making problem of closed-loop supply chain (CLSC) with dominant retailer under different CSR investment modes is studied. The decision-making models of CLSC under the manufacturer’s and retailer’s CSR investment mode are constructed respectively. The conditions for enterprises to fulfil CSR through profit donation and the influence of different CSR investment modes on the pricing of new products and recycling of waste products are discussed. The research shows that no matter what kind of CSR investment mode, only when the consumers are more sensitive to the CSR investment of enterprises, the manufacturer and retailer will fulfil the CSR through profit donation. The CSR investment mode of the manufacturer is more beneficial to consumers, environment, CLSC members and whole system. No matter whether the dominant retailer carries out CSR investment or not, she always obtains more channel profits than the manufacturer.


Kybernetes ◽  
2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Zonghuo Li ◽  
Wensheng Yang ◽  
Yinyuan Si

PurposeThis paper investigates a dual-channel supply chain in which a manufacturer offers coupons in the online channel and the retailer in the offline channel. The optimal pricing and coupon promotion policies are explored, and the brand image under different promotion scenarios is studied.Design/methodology/approachThree differential game models, namely no coupon is offered, coupons offered by the manufacturer and coupons offered by the retailer, are constructed.FindingsThe results show that the manufacturer and retailer intend to conduct coupon promotions under a large coupon redemption rate. Coupon promotion derives a higher price and profit for the issuers, and the manufacturer can free-ride on the retailer's coupon promotion. The retailer's profit in the retailer-promotion scenario may be lower than that in the manufacturer-promotion scenario in some special conditions. Besides, price, coupon face value, brand image and profit increase over time. After multiple cycles game, the operational strategy evolves to an optimal equilibrium status.Originality/valueThis paper provides guidance and advice for dual-channel supply enterprises to implement joint pricing and coupon promotion strategies under multiple sales seasons.


2018 ◽  
Vol 154 ◽  
pp. 01049
Author(s):  
Erwin Widodo ◽  
Rahaditya Dimas Prihadianto ◽  
Dody Hartanto

Recently fresh fruit sector is grown not only due to increasing of demand that spirited by healthy lifestyle but also requirement of quality food should be eaten daily. Its complexity make many research considered fruit in certain supply chain, called as Fruit Supply Chain (FSC). In FSC, customers tend to purchase products with a longer remaining lifetime and avoid the ones which give aging signal. Customer willingness to pay decreases once the product start to be deteriorated, which may cause slower demand for aging fruits. Consequently, retailers should enable discounted price for aging fruits products to retain or improve demand rate. Main purpose of this research is explaining how to maximize supply chain profit by applying dynamic pricing. A set of mathematical model is optimized on this research. It addresses dynamic pricing for FSC players to achieve better profitability. The result proves that dynamic pricing is urgent to be done which is signaled by increment of FSC Profit. FSC players can separate selling period into three periods, which are forward buying period, normal price period, and markdown price period as implementation of this scheme.


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