scholarly journals Optimal Decisions for a Fuzzy Two-Echelon Supply Chain

2014 ◽  
Vol 2014 ◽  
pp. 1-8 ◽  
Author(s):  
Qingfeng Song ◽  
Kai Shi ◽  
Sheng Lin ◽  
Guangping Xu
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Decision Models ◽  
Equilibrium Solutions ◽  
Supply Chain System ◽  
Market Structures ◽  
Optimal Decisions ◽  
Game Theoretical Approach ◽  
Selling Effort ◽  
Optimistic Value

This paper discusses the optimal decisions of pricing and selling effort for a two-echelon supply chain with uncertain consumer demands, manufacturing costs, and selling costs. In order to maximize theα-optimistic value of the profits, based on different market structures, one centralized decision model and three decentralized decision models are developed, and the corresponding analytical equilibrium solutions are obtained using the game-theoretical approach. The results illustrate that no matter what decision case is, the optimal retail and wholesale prices in the case of considering selling effort are, respectively, larger than those of no selling effort; the optimal profits of the manufacturer, the retailer, and the whole supply chain system in the case of considering selling effort are, respectively, larger than those of no selling effort except for the profit of the retailer in the case that the manufacturer plays the leader’s role. Finally, one numerical example is presented, which illustrates the effectiveness of the proposed models.

scholarly journals Decision Analysis of Advertising and Price for Bilateral Competing Supply Chain

2013 ◽  
Vol 2013 ◽  
pp. 1-7
Author(s):  
Cheng-Tang Zhang ◽  
Shan-Lin Yang
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Prisoner's Dilemma ◽  
Prisoner’S Dilemma ◽  
Decision Models ◽  
Competition Intensity ◽  
Supply Chain System ◽  
Investment Level ◽  
First Mover Advantage ◽  
The Impact

The outcome of centralized equilibrium, prisoner's dilemma equilibrium, and decentralized equilibrium under different decision models has been provided with regards to bilateral competing supply chain system, either side of which is composed of one manufacturer and one retailer. Theoretical analysis indicates a positive correlation between price and one's own advertising investment level and a negative correlation between price and the opponent's advertising investment level. Through analysis of numerical examples, the results reveal a first mover advantage that leads to prisoner's dilemma in the system as well as the impact that price and advertising competition intensity has on the supply chain's choice of decision model.

scholarly journals Research on Quality Decisions and Coordination with Reference Effect in Dual-Channel Supply Chain

2020 ◽  
Vol 12 (6) ◽  
pp. 2296 ◽  
Author(s):  
Zhou Xideng ◽  
Xu Bing ◽  
Xie Fei ◽  
Li Yu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Service Quality ◽  
Product Quality ◽  
Cost Sharing ◽  
Supply Chain System ◽  
Optimal Decisions ◽  
Dual Channel ◽  
Reference Quality ◽  
Dual Channel Supply Chain

Although supply quality management has been studied extensively, one important marketing phenomenon, that is, reference effect has been rarely considered in dual-channel supply chain quality management literatures. In fact, the quality reference effect is also an important factor which influences consumer purchasing behavior. We aim to explore the influence of the reference effect on the optimal decisions and performance of a dual-channel supply. Thus, we formulate dynamic models that include the product quality reference effect and the service quality reference effect in a dual-channel supply chain system consisting of a manufacturer and a retailer under the different decision-making scenarios. Utilizing differential game theory, optimal decisions are obtained for the product quality and service quality decision under the different decision-making scenarios. In addition, the optimal decisions and profits are compared, then a service cost-sharing coordinating mechanism is proposed and proven to be effective in the supply chain system. The main results show when the initial reference service quality is low, the consumer service quality reference effect is beneficial to the manufacturer. The spillover effect of service quality is not conducive to the retailer and the manufacturer. When the initial reference product quality is low, both online and offline product quality reference effects are beneficial to the retailer and the manufacturer. The stable (or final) reference quality will not be affected by the initial reference quality. 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 cost-sharing coordinating mechanism to eliminate the double marginal effect.

scholarly journals Warranty Decision Model and Remanufacturing Coordination Mechanism in Closed-Loop Supply Chain: View from a Consumer Behavior Perspective

2018 ◽  
Vol 10 (12) ◽  
pp. 4738 ◽  
Author(s):  
Xiaodong Zhu ◽  
Lingfei Yu ◽  
Ji Zhang ◽  
Chenliang Li ◽  
Yizhao Zhao
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Closed Loop ◽  
Stackelberg Game ◽  
Coordination Mechanism ◽  
Market Demand ◽  
Supply Chain System ◽  
Closed Loop Supply Chain ◽  
Chain System ◽  
Warranty Service

The remanufacturing warranty strategy has become an effective mechanism for reducing consumer risk and stimulating market demand in closed-loop supply chain management. Based on the characteristics of consumers’ behavior of purchase decisions, this paper studies the warranty decision model of remanufacturing closed-loop supply chain under the Stackelberg game model. The present study discussed and compared the decision variables, including remanufacturing product pricing, extended warranty service pricing, warranty period and supply chain system profit. The research shows that consumers’ decision-making significantly affirms the dual marginalization effect of the supply chain system while significantly affecting the supply chain warranty decision; the improved revenue sharing contract and the two charge contracts respectively coordinates the manufacturer-led and retail-oriented closed-loop supply chain system, which effectively implements the Pareto improvement of the closed-loop supply chain system with warranty services. In the present study, the model is verified and analyzed by numerical simulation.

scholarly journals Differential Pricing and Emission Reduction in Remanufacturing Supply Chains with Dual-Sale Channels under CCT-Mechanism

2020 ◽  
Vol 12 (19) ◽  
pp. 8150 ◽  
Author(s):  
Kaifu Yuan ◽  
Guangqiang Wu ◽  
Hui Dong ◽  
Bo He ◽  
Dafei Wang
Keyword(s):  
Supply Chain ◽  
Carbon Emissions ◽  
Emission Reduction ◽  
Emission Control ◽  
Profit Maximization ◽  
Coordination Mechanism ◽  
Control Coefficient ◽  
Supply Chain System ◽  
Optimal Decisions ◽  
The Government

In order to make optimal decisions for pricing and emission reduction, a remanufacturing supply chain system with dual-sale channels is investigated. With regard to the preferences of consumers for different channels and carbon cap-and-trade mechanisms, profit-maximization models are developed on supply chain members and systems in decentralized and centralized cases. Based on a backward induction, the corresponding formulae for decision variables are obtained. Then the effect of the industry emission control coefficient is analyzed and the optimal decisions of two cases are compared. Finally, the coordination mechanism and numerical analysis are presented. The result indicates that: (1) As the free carbon allowances granted by the government to the manufacturer increases, the investment in carbon reduction from the manufacturer will increase. As the industry emission control coefficient increases, the carbon emissions per product and the prices of new and remanufactured products will decrease, while the demands of the new and remanufactured products and the profits of supply chain members and systems will increase. (2) As the direct sale channel preference coefficient increases, the profits of the manufacturer and the system will increase while the retailer’s profit will decrease. Correspondingly, the carbon emissions of unit product will decrease, and the sales of the direct sale channel will increase while the sales of the retail channel will decrease. (3) The decision in the coordinated case not only ensures emission reduction and system profit to reach the level of the centralized case, but also raises the profits of supply chain members in the decentralized case. Therefore, it is preferable to other decisions. (4) As the carbon trading price increases, the emission reduction investment from the manufacturer will increase while the profits of the supply chain and its members will increase.

scholarly journals Optimal Decisions and Financing Strategies Selection of Supply Chain with Capital Constraint

2016 ◽  
Vol 2016 ◽  
pp. 1-14 ◽  
Author(s):  
Bo Wang ◽  
De-Chun Huang ◽  
Hai-yan Li ◽  
Ji-Yong Ding
Keyword(s):  
Supply Chain ◽  
Decision Model ◽  
Numerical Study ◽  
Order Quantity ◽  
Optimal Production ◽  
Optimal Decisions ◽  
Financing Mode ◽  
Procurement Contract ◽  
Production Quantity ◽  
Selection Of

Two financing modes can be considered for manufacturer’s production capital constrained: RPFM (retailer’s prepayment financing mode) and PCFM (procurement contract financing mode). Under the RPFM, the retailer places order in advance for a discount price and makes prepayment; manufacturer is able to finance from a bank as production quantity cannot satisfy the second-order quantity of retailer. By contrast, manufacturers make financing from commercial banks based on the procurement contract with upstream supplier under the PCFM. Taking into account the relation between production volumes with the manufacturer’s own capital and retailer’s order quantity, the optimal production and financing decision model for manufacturer under these two financing modes are built. Moreover, the profits of the manufacturer, the retailer, and the supply chain are compared and discussed. Results show that both of the two modes can create new value and profit for the supply chain with capital constraint and achieve optimal production under “newsvendor” mode; the supply chain has the better performance under the RPFM than that achieved under the PCFM. Also, under the RPFM, the manufacturer’s production and the profit of the whole supply chain would be increased when the manufacturer makes the second financing. Similar conclusion is reached under the PCFM. Finally, numerical study was given to demonstrate the conclusions.

scholarly journals Optimal Decisions and Coordination in a Socially Responsible Supply Chain with Irresponsibility Risk

2019 ◽  
Vol 11 (24) ◽  
pp. 7252
Author(s):  
Wang ◽  
Zhong ◽  
Xu
Keyword(s):  
Supply Chain ◽  
Stackelberg Game ◽  
Revenue Sharing ◽  
Investment Efficiency ◽  
Socially Responsible ◽  
Supply Chain System ◽  
Optimal Decisions ◽  
Investment Level ◽  
Consumer Responsibility ◽  
Corporate Social

Many companies make some stakeholders pleased but others cannot. To help understand why, it is very important to study the coexistence of corporate social responsibility (CSR) and corporate social irresponsibility (CSI). This paper considers a manufacturer with irresponsibility risk in a centralized and decentralized socially responsible supply chain, and uses a Stackelberg game to investigate the optimal policies on price and CSR investment level. This paper also examines the influence of consumer responsibility awareness and CSR investment efficiency on the decision behaviors of the manufacturer and retailer. Moreover, we developed a new mechanism to coordinate the decentralized supply chain system, which consists of the retailer participating in CSR and revenue sharing. Our results indicate that the manufacturer’s and retailer’s optimal decisions may not be significantly influenced by consumer responsibility awareness, but the effect of CSR investment efficiency is significant. Our results also show that if the degree of retailer participation and the proportion of revenue sharing are of moderate size, then not only can the contract mechanism coordinate the decentralized socially responsible supply chain, but it can ensure that a win–win situation can be achieved by the supply chain members.

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.

Strategy Analysis of Closed Loop Supply Chain for Scrapped Medical Equipment Based on Hybrid Recycling Model

2011 ◽  
Vol 219-220 ◽  
pp. 722-726 ◽  
Author(s):  
Lu Shi ◽  
Xin Ma
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Medical Equipment ◽  
Closed Loop ◽  
Decision Models ◽  
Sale Price ◽  
Strategy Analysis ◽  
Closed Loop Supply Chain ◽  
Equipment Manufacturer ◽  
Optimal Decisions

The decision models of closed loop supply chain for scrapped medical equipment that is composed of one medical equipment manufacturer and one medical equipment retailer with product remanufacturing under hybrid recycle strategy was built. The whole-sale price and transfer recycling price were considered as the decision-making variables of the medical equipment manufacturer, and the recycling price as the decision-making variable of the party undertaking the recycling effort. The optimal pricing and the optimal profit were obtained and the optimal decisions of the manufacturer were analyzed on the further. And the profits of medical equipment manufacturer, retailer and the total supply chain are also discussed under different scenario.

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