Optimal pricing and production decisions of fashion apparel brands in a two‐stage sales setting

2020 ◽  
Vol 28 (2) ◽  
pp. 738-763
Author(s):  
Baoli Shi ◽  
Qi Xu ◽  
Zhongmiao Sun
Keyword(s):  
Optimal Pricing ◽  
Two Stage ◽  
Production Decisions ◽  
Fashion Apparel

scholarly journals Risk-Averse Suppliers’ Optimal Pricing Strategies in a Two-Stage Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-11 ◽  
Author(s):  
Rui Shen ◽  
Zhiqing Meng ◽  
Xinsheng Xu ◽  
Min Jiang
Keyword(s):  
Supply Chain ◽  
Loss Function ◽  
Wholesale Price ◽  
Competitive Environment ◽  
Optimal Pricing ◽  
Risk Averse ◽  
Pricing Strategies ◽  
Two Stage ◽  
Future Loss

Risk-averse suppliers’ optimal pricing strategies in two-stage supply chains under competitive environment are discussed. The suppliers in this paper focus more on losses as compared to profits, and they care their long-term relationship with their customers. We introduce for the suppliers a loss function, which covers both current loss and future loss. The optimal wholesale price is solved under situations of risk neutral, risk averse, and a combination of minimizing loss and controlling risk, respectively. Besides, some properties of and relations among these optimal wholesale prices are given as well. A numerical example is given to illustrate the performance of the proposed method.

scholarly journals Two-sided vertical competition considering product quality in a manufacturing-remanufacturing system

2021 ◽  
Vol 0 (0) ◽  
pp. 0
Author(s):  
Kai Li ◽  
Yan Li ◽  
Jing Liu ◽  
Nenggui Zhao
Keyword(s):  
Product Quality ◽  
Dynamic Game ◽  
Optimal Pricing ◽  
High Quality ◽  
Production Decisions ◽  
Competition Mode ◽  
Pricing Power ◽  
The One ◽  
Mode A

<p style='text-indent:20px;'>We study two-sided vertical competition between a manufacturer and a supplier. The problem is formulated as a dynamic game where the supplier has more pricing power than the manufacturer. Based on the one-sided vertical competition modes with different recyclers as benchmarks, we derive optimal pricing and production decisions of manufacturer and supplier and further study the impacts of product quality on those decisions under the two-sided vertical competition mode. A key finding is that manufacturer/supplier prefers to be a follower rather than the first one to engage in recycling activities. Specifically, when the manufacturer/supplier has engaged in recycling activities, the supplier/manufacturer has an incentive to participate in recycling activities as well. We also find that high-quality remanufactured components/products can benefit manufacturer, supplier and consumers at the same time.</p>

Optimal pricing decisions for multichannel healthcare service with differing consemers’ knowledge levels

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Feng Yang ◽  
Wei Wang ◽  
Xiabing Zheng
Keyword(s):  
Service Providers ◽  
Consumer Surplus ◽  
Healthcare Services ◽  
Pricing Strategy ◽  
Optimal Pricing ◽  
Model Framework ◽  
Two Stage ◽  
Content Type ◽  
Knowledge Levels ◽  
Offline Channels

Purpose The purpose of this paper is to establish a stylized model to solve the pricing strategy, resource allocation and consumer surplus problems of multichannel healthcare services. Design/methodology/approach This paper considers a two-stage decision model with different levels of consumers’ knowledge. Faced with physical problems, knowledgeable consumers can solve their problems by seeking online healthcare channels, while unknowledgeable consumers need to make a two-stage decision to try to solve their problems. Findings The effective diagnosis rate and the proportion of knowledgeable consumers positively impact the optimal pricing in online and offline channels. In addition, a higher proportion of knowledgeable consumers does not result in higher demand in the online and offline channels. Moreover, if service providers lower their prices a small amount, they will lose some profit, but the consumer surplus will be higher, which will encourage more consumers to access healthcare services. Research limitations/implications Knowledge levels are simplified into two categories. Also, the authors assume the resources of online and offline healthcare services are comparable. Originality/value This paper incorporates the knowledge level and misdiagnosis rate into the model framework to study the most effective pricing strategy for multichannel healthcare services.

scholarly journals Optimal Pricing Decision of Fashion Apparel considering Experiential Service and Design Enhancement

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-11 ◽  
Author(s):  
Qi Xu ◽  
Lili Zhou ◽  
Qi Chen
Keyword(s):  
Substitution Effects ◽  
Optimal Pricing ◽  
Selling Price ◽  
Market Demand ◽  
Complementarity Effect ◽  
Deterioration Rate ◽  
Pricing Decision ◽  
Proposed Model ◽  
Total Profit ◽  
Fashion Apparel

Fashionable clothing is susceptible to seasonality, fashion popularity, and other factors. The decline in the fashion level for fashion apparel will cause its market value to continuously decrease, reducing market demand and creating a backlog of apparel inventory. Under such a circumstance, the apparel retailer chooses to maintain the fashion of the goods by providing experiential services or enhancing product design capabilities. This paper focuses on the discussions on the issue of whether experience service and design efforts are complements or substitutes. The major objective is to simultaneously determine the experience service investment and the optimal selling price to maximize the total profit. First, a Cobb–Douglas utility function is used to derive a demand function that depends on the price and fashion level. Four kinds of inventory models are further established to obtain optimal pricing and inventory ordering strategies. Second, an algorithm is presented to search for the optimal solutions of the proposed model. Finally, a numerical example is provided to perform a sensitivity analysis of the key parameters and to discuss specific managerial insights. The numerical examples show that both the experiential services and the enhanced fashion design can effectively reduce the apparel company’s inventory and increase profits. When the two strategies are combined, they will produce complementary or substitution effects, which depend on the deterioration rate of the fashion level of the apparel. If the deterioration rate is less than a critical value, the interaction of experiential services and design investment has a complementarity effect.

Optimal pricing and production decisions in the presence of symmetrical and asymmetrical substitution

Omega ◽  
2011 ◽  
Vol 39 (5) ◽  
pp. 528-538 ◽  
Author(s):  
Sang-Won Kim ◽  
Peter C. Bell
Keyword(s):  
Optimal Pricing ◽  
Production Decisions

Optimal pricing and production decisions in utilizing reusable containers

2013 ◽  
Vol 143 (2) ◽  
pp. 222-232 ◽  
Author(s):  
Büşra Atamer ◽  
İsmail S. Bakal ◽  
Z. Pelin Bayındır
Keyword(s):  
Optimal Pricing ◽  
Production Decisions ◽  
Reusable Containers

Two-stage self-seeding method for preparation of single crystals of poly(phenylene sulfide)

1989 ◽  
Vol 47 ◽  
pp. 368-369
Author(s):  
Sengshiu Chung ◽  
Peggy Cebe
Keyword(s):  
Single Crystals ◽  
High Performance ◽  
Dilute Solution ◽  
Two Stage ◽  
Annealing Behavior ◽  
High Performance Polymers ◽  
Seeding Method ◽  
Phenylene Sulfide

We are studying the crystallization and annealing behavior of high performance polymers, like poly(p-pheny1ene sulfide) PPS, and poly-(etheretherketone), PEEK. Our purpose is to determine whether PPS, which is similar in many ways to PEEK, undergoes reorganization during annealing. In an effort to address the issue of reorganization, we are studying solution grown single crystals of PPS as model materials.Observation of solution grown PPS crystals has been reported. Even from dilute solution, embrionic spherulites and aggregates were formed. We observe that these morphologies result when solutions containing uncrystallized polymer are cooled. To obtain samples of uniform single crystals, we have used two-stage self seeding and solution replacement techniques.

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