scholarly journals Rebate Strategy Selection and Channel Coordination of Competing Two-Echelon Supply Chains

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-20
Author(s):  
Ziling Wang ◽  
Rong Zhang ◽  
Bin Liu
Keyword(s):  
Supply Chain ◽  
Optimal Choice ◽  
Policy Implications ◽  
Market Size ◽  
Channel Coordination ◽  
Strategy Selection ◽  
Competition Intensity ◽  
Diverse Range ◽  
Additional Dimension ◽  
Coordination Policy

Rebate has long been a crucial tool that has attracted researchers from a diverse range of fields including marketing and supply chain management. When a manufacturer uses a retailer for reaching end customers, the rebate strategy undertakes an additional dimension. Here we show whether the two rebate strategies, manufacturer rebate and channel rebate, can be the optimal choice for the manufacturer and the retailer. And we aim at full coordination with rebate. Game theory is exploited to identify the equilibrium rebate decisions, which are fully characterized with two rebate strategies considering rebate sensitivity. Furthermore, we demonstrate how the decisions depend on parameters, such as market size, rebate redemption rate, and competition intensity in monopoly and duopoly supply chain systems. Our work also coordinates the supply chain with two coordination policies and examines if they can achieve full coordination. Counterintuitive findings suggest that the channel rebate with sensitivity and discrimination is not effective and the manufacturer rebate is the unique optimal option. Besides, the coordination can be realized with a centralized rebate in monopoly setting when the manufacturer forgoes her own interest. Then full coordination can be achieved in duopoly setting with a new coordination policy, rebate combination, given the redemption rate for the channel rebate is lower compared with the manufacturer rebate. Managerial insights are suggested that offering rebates with discrimination can have significant inventory and coordination policy implications and can lead to a double win under a well-controlled redemption rate.

scholarly journals Information Acquisition and Its Incentives in an E-Commerce Supply Chain under the Offline Showroom Model

2021 ◽  
Vol 16 (5) ◽  
pp. 1791-1804
Author(s):  
Mengli Li ◽  
Xumei Zhang
Keyword(s):  
Supply Chain ◽  
Information Acquisition ◽  
Incentive Contracts ◽  
Demand Forecast ◽  
Competition Intensity ◽  
Demand Information ◽  
Optimal Information ◽  
Acquisition Strategy ◽  
The One ◽  
The Impact

Recently, the showroom model has developed fast for allowing consumers to evaluate a product offline and then buy it online. This paper aims at exploring the optimal information acquisition strategy and its incentive contracts in an e-commerce supply chain with two competing e-tailers and an offline showroom. Based on signaling game theory, we build a mathematical model by considering the impact of experience service and competition intensity on consumers’ demand. We find that, on the one hand, information acquisition promotes supply chain members to obtain demand information directly or indirectly, which leads to forecast revenue. On the other hand, information acquisition promotes supply chain members to distort optimal decisions, which results in signal cost. The optimal information acquisition strategy depends on the joint impact of forecast revenue, signal cost and demand forecast cost. Notably, in some conditions, the offline showroom will not acquire demand information even when its cost is equal to zero. We also design two different information acquisition incentive contracts to obtain Pareto improvement for all supply chain members.

scholarly journals Does Stakeholder Pressure Matters in Adopting Sustainable Supply Chain Initiatives? Insights from Agro-Based Processing Industry

2021 ◽  
Vol 13 (13) ◽  
pp. 7278
Author(s):  
Tamoor Azam ◽  
Songjiang Wang ◽  
Muhammad Mohsin ◽  
Muhammad Nazam ◽  
Muhammad Hashim ◽  
...  
Keyword(s):  
Supply Chain ◽  
Food Processing ◽  
Policy Implications ◽  
Successful Implementation ◽  
Sustainable Supply Chain ◽  
Sustainable Business ◽  
Global Marketplace ◽  
Sustainable Food ◽  
Business Goals ◽  
Stakeholder Pressure

Over the past few years, sustainable supply chain initiatives (SSCIs) have grabbed attention in the domestic, as well as global, marketplace of the food sector. Nowadays, the success of the entire food supply chain depends on the prosperity of farms, local communities, trader processors, and agro-based industries. Despite its importance, food processing industries (FPIs) are encountering various hurdles in achieving sustainable business goals due to the sheer number of potential barriers. Due to this reason, stakeholders are continuously pressuring the management of FPIs to embrace sustainable food processing activities. In light of this, the present study aims to apply a hybrid fuzzy analytical hierarchy process (F-AHP) framework, based on fuzzy technique for order preference by similarity to the ideal solution (F-TOPSIS), for analyzing the barriers and prioritizing the possible pathways in adopting the SSCIs for the development of FPIs. Based on the extensive review of literature and panel consultation with experienced experts, a total of seven main barriers, forty-two sub barriers, and five possible pathways as strategic tools were finalized and ranked. An empirical case investigation of a Pakistani-based food processing company has been taken to check the practical application of the proposed framework along with sensitivity analysis. The findings of this study reveal that the lack of sustainable outsourcing factors were found as the top-ranked barrier in implementing SSCIs, and the possible pathway to overcome this barrier is the appropriate management of the procurement cycle. The major contribution of this study is to establish a barriers prioritization framework and suggest possible pathways to overcome these barriers for the successful implementation of SSCIs. Finally, the theoretical, managerial, and policy implications are provided as a way forward for the concerned stakeholders and policymakers.

scholarly journals Coordinating a Supply Chain with a Loss-Averse Retailer and Effort Dependent Demand

2014 ◽  
Vol 2014 ◽  
pp. 1-12 ◽  
Author(s):  
Liying Li ◽  
Yong Wang
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Loss Aversion ◽  
Special Class ◽  
Numerical Study ◽  
Supply Chain Performance ◽  
Channel Coordination ◽  
Gain Loss ◽  
Decision Making Behavior ◽  
Dependent Demand

This study investigates the channel coordination issue of a supply chain with a risk-neutral manufacturer and a loss-averse retailer facing stochastic demand that is sensitive to sales effort. Under the loss-averse newsvendor setting, a distribution-free gain/loss-sharing-and-buyback (GLB) contract has been shown to be able to coordinate the supply chain. However, we find that a GLB contract remains ineffective in managing the supply chain when retailer sales efforts influence the demand. To effectively coordinate the channel, we propose to combine a GLB contract with sales rebate and penalty (SRP) contract. In addition, we discover a special class of gain/loss contracts that can coordinate the supply chain and arbitrarily allocate the expected supply chain profit between the manufacturer and the retailer. We then analyze the effect of loss aversion on the retailer’s decision-making behavior and supply chain performance. Finally, we perform a numerical study to illustrate the findings and gain additional insights.

scholarly journals Influence Mechanism on Supplier Emission Reduction Based on a Two-Level Supply Chain

2021 ◽  
Vol 18 (23) ◽  
pp. 12439
Author(s):  
Lina Ma ◽  
Xinran Zhang ◽  
Yushen Du
Keyword(s):  
Supply Chain ◽  
Environmental Impact ◽  
Social Welfare ◽  
Ghg Emissions ◽  
Optimal Choice ◽  
Emissions Reduction ◽  
Governmental Intervention ◽  
The Government ◽  
Reduction Effort ◽  
Better Than

The purpose of this paper is to investigate environmental performance of a supply chain which consists of an upstream supplier and a downstream firm. A mathematical model considering both downstream firm’s monitoring and governmental intervention is developed. Afterwards, a numerical example is presented to show the equilibriums of these models and the optimal choices of firms and government. The results show that when customers’ environmental awareness increases, both total environmental impact and social welfare decrease. The downstream firm’s monitoring will certainly reduce the total environmental impact. In most cases, it does not matter whether the downstream firm chooses to monitor the supplier or not, the total environmental impact and social welfare would not be affected when the government chooses subsidy. If a subsidy is present, firms and environment will be better than those without subsidy. Hence, the government is more likely to choose to provide subsidy and the downstream firm will not monitor the supplier’s greenhouse gas (GHG) emissions reduction effort. In a few cases when environmental impact is too large, taxation may be the optimal choice for the government and the downstream firm will choose to monitor the supplier’s GHG emissions reduction investment.

Empirical testing of a model on supply chain management adoption in India using the case study method

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Srichandan Sahu ◽  
Kambhampati Venkata Satya Surya Narayana Rao
Keyword(s):  
Supply Chain ◽  
Supply Chain Management ◽  
Theoretical Model ◽  
Policy Implications ◽  
Chain Management ◽  
Content Type ◽  
Marketing Activities ◽  
Multiple Case ◽  
Innovative Culture

Purpose The purpose of this study is to empirically test a theoretical model on supply chain management (SCM) adoption in India. Design/methodology/approach The present study used a multiple case research method to study the phenomenon. The findings are based on analysis of the SCM adoption processes in three large manufacturing organizations from the aluminium, steel and fertilizer industries. Findings The present study tested four propositions. Three of the propositions were empirically validated and one proposition was revised. The key findings are: one, a lack of recognition by an organization of higher advantages because of SCM adoption as compared to the costs leads to SCM non-adoption. Two, a lack of organizational readiness factors such as a collaborative and innovative culture, higher absorptive capacity and slack resources leads to the non-adoption of SCM. Three, a lack of institutional pressure and marketing activities of the SCM vendors on an organization lead to the non-adoption of SCM. Originality/value The major contribution of the present study is that it has empirically validated the theoretical model for SCM adoption in India. The findings of the present study have both theoretical and practical implications. Theoretically, a model of SCM adoption was validated. The study provides managerial connotations for SCM vendors, consultants, practitioners and policy implications for policymakers.

An Interdisciplinary Inquiry Into Sustainable Supply Chain Management

2018 ◽  
pp. 1-17
Author(s):  
Fern D. Kaufman ◽  
M. Ali Ülkü
Keyword(s):  
Social Sciences ◽  
Supply Chain ◽  
Supply Chain Management ◽  
Natural Sciences ◽  
Policy Implications ◽  
Sustainable Supply Chain ◽  
Chain Management ◽  
Sustainable Supply Chain Management ◽  
Sustainability Strategy ◽  
Interdisciplinary Framework

Research in the last two decades has broadened venues from optimizing operations for a specific organization to critically examining the entire supply chain from the perspective of sustainability. The term sustainability has been used in varying meanings in different disciplines. With this chapter, the authors propose to bring together an interdisciplinary framework for sustainable supply chain management (SSCM). SSCM will be studied through literature surveys on the axes of both natural sciences, and social sciences, with an overarching goal of policy implications. Unlike quantitatively oriented natural sciences, integrating perspectives from the social sciences into a firm's overall sustainability strategy is still seen as a large undertaking by firms and can impede its sustainability. More practical and scholarly research needs to be conducted in this area, especially in terms of assessment and evaluation mechanisms.

Methodology for the Design of Traceability System in Food Assistance Supply Chains

2021 ◽  
pp. 440-461
Author(s):  
Feizar Javier Rueda-Velasco ◽  
Angie Monsalve-Salamanca ◽  
Wilson Adarme-Jaimes
Keyword(s):  
Public Policy ◽  
Supply Chain ◽  
Quantitative Comparison ◽  
Social Conditions ◽  
Food Assistance ◽  
Policy Implications ◽  
Technological Infrastructure ◽  
Traceability System ◽  
The Social ◽  
New Criteria

The food assistance programmes (FAP) has the mission to guarantee minimum nutrition requirements in a vulnerable population. Nevertheless, the small deliveries for a spread population, the social conditions, and the limited technological infrastructure could make it difficult to adequately aid supply. To solve these limitations, this chapter proposes a methodology for the design of traceability systems in FAP which allows increasing supply chain visibility, coordination between deliveries and social conditions, and therefore, possible impacts on public policy implications. A qualitative and quantitative comparison of the conventional frameworks is carried out and contrast with the needs of the programmes studied. Also, new criteria are also added to adapt the design to the technological infrastructure and the socio-demographic conditions of the territory. The methodological proposal is applied to the Bienestarina nutritional programme in Colombia, where the technologies and tools to subsequently design the traceability system are proposed.

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