No abstract

Abuse of channel incentives by a manufacturer's authorized retailers often encourages gray markets to emerge, which affects supply chain profit as well as the manufacturer's brand image. Therefore, myopically selecting a product distribution contract can be harmful. We analyze the performance of a number of contracts in the presence of a gray market—primarily wholesale price, revenue sharing, and quantity discounts—and analyze their impact on prices charged, quantity ordered, as well as profits. We also investigate their impact on consumer surplus and social welfare. Our results indicate that selection of an appropriate contract is quite crucial, as different contracts give different results across a variety of operating parameters. Their performance is governed by the relative trade‐offs involving diversion of excess quantity to the gray market at the end of the season, an extension of target market due to lower prices in the alternate channel, and the negative impact on the manufacturer's brand that also affects its revenue. We delineate these characteristics and find that, in general, the quantity discount contract performs the worst. Interestingly, if the blowback suffered by the manufacturer on account of product availability in the gray market is high, the wholesale price contract may outperform the other contracts, including the revenue‐sharing contract with a truthful retailer, which otherwise is a more attractive option. We discuss the implications of our analysis, and also provide strategies and pointers to manage the impact of gray markets.

PurposeThe disruption caused by COVID-19 exhorts to reiterate the role of operations and supply chain management (OSCM) in achieving social sustainability. Therefore, the present study aims to develop a conceptual understanding of the OSCM ecosystem's role in enabling the world to accelerate towards social sustainability.Design/methodology/approachThe study uses the integrative review method to achieve the stated objectives. The study first identifies the societal disruptions caused by COVID-19. Then based on dynamic capabilities (DC) theory, stakeholder theory and real-life examples, the study puts forward the stakeholder dynamic capabilities (SDC) view as an approach to overcome these social challenges.FindingsTaking the SDC view, the study identified ten social challenges aggravated by the COVID-19. Response actions for OSCM have been proposed to mitigate these challenges.Research limitations/implicationsThe pandemic has brought new challenges to the OSCM to achieve social sustainability. Therefore, the study's proposed response actions aim to assist OSCM managers in leveraging their expertise to do good for society and create a better world. Moreover, the study also provides avenues for future research on the topic.Originality/valueBased on the SDC view, the study attempts to conceptualise social sustainability for OSCM during a pandemic. The SDC view helps capture internal and external social challenges emerging due to COVID-19 and utilise firms' capabilities to overcome these challenges.

No abstract

No abstract