Coordinating a Supply Chain with Price and Advertisement Dependent Stochastic Demand

Li, Liying; Wang, Yong; Yan, Xiaoming

doi:10.1155/2013/315676

Cited by 11 publications

(4 citation statements)

References 29 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Kaplan et al studied the customer's price-oriented behavior using the concept of price elasticity of demand [38]. Li et al examined pricing, ordering, and coordination of advertising in a supply chain, where retailers face stochastic demand depending on their advertising prices and costs [39]. Ma et al investigated the two-stage supply chain, considering changes in quality and marketing activities over time [40].…”

Section: Competitive Supply Chainmentioning

confidence: 99%

Design of a Green Supply Chain Based on the Kano Model Considering Pricing

Sheikh Azadi,

Shamsi Nesary,

Kebriyaii

et al. 2023

Sustainability

View full text Add to dashboard Cite

Nowadays, the design of supply chain networks should be based on environmental issues as well as the needs of customers since the main driver of a supply chain network is customers. Continuous innovation of products requires understanding the features that are most important to customers, and product pricing should be carried out in a way that includes the satisfaction of both customers and manufacturers. This study uses the Kano model to classify product features into different categories. The design of the green supply chain network based on the Kano model has not been investigated in the literature so far. This study examines a green supply chain network including multiple manufacturers, product types, distributors, and carriers that is designed based on Kano’s conceptual model of multiple needs. In the proposed mathematical model of this paper, customer demand is a function of the selling price of the product, transportation pollution is minimized, and a solution based on the Cooperative Game Theory approach is used to solve the mathematical model using the GAMS software. One of the advantages of the proposed mathematical model in this research compared to other supply chain models is that the design needs of the supply chain network based on the Kano model (“must-be”, “one-dimensional”, “attractive” and “indifferent”) can be determined based on customer satisfaction. In addition, the price of the product can be determined according to the satisfaction of both customers and the manufacturers.

show abstract

Section: Competitive Supply Chainmentioning

confidence: 99%

Design of a Green Supply Chain Based on the Kano Model Considering Pricing

Sheikh Azadi,

Shamsi Nesary,

Kebriyaii

et al. 2023

Sustainability

View full text Add to dashboard Cite

show abstract

“…Expanding on this, Cheng and Sethi (1999) investigated the combined production and advertising problem, considering stochastic random demand that depended on the level of advertising through a Markov process. Furthermore, other studies have explored joint inventory, pricing, and advertising decisions, including the works of Yu et al (2009), Yu and Huang (2010), Li et al (2013), andJiang et al (2015). Khan et al (2020) assumed that the demand for a perishable product was influenced by both the selling price and advertising efforts.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Advertisement expenditure dependent demand function is assumed to be linearly increasing in advertising expenditure given by 𝑔(𝑚) = 𝛼 + 𝛽𝑚; 𝛼, 𝛽 > 0 (see Figure 1). Such demand functions are frequently used in literature (Yue et al, 2006;Szmerekovsky and Zhang, 2009;Xie and Neyret, 2009;Xie and Wei, 2009;SeyedEsfahani et al, 2011;Li et al, 2013). (vii) Customers with reservations may cancel their orders during the advance booking period.…”

Section: Literature Reviewmentioning

confidence: 99%

Optimal Pricing and Advertisement Policy for an Advance Order Booking Inventory System with Order Cancellation under Inflationary Condition

Aggarwal,

Ahmed,

Malik

2023

Int. j. math. eng. manag. sci.

View full text Add to dashboard Cite

The e-commerce business has grown significantly over the past few years, mainly due to providing a better customer experience through advance booking and order cancellation options with a full refund. In this paper, the inventory control problem of a firm that offers advance booking for the product and cancellation (with a full refund) before the due delivery date is addressed. A profit maximization model is formulated to find the optimum inventory cycle length, the selling price of the product, and advertisement expenditure. The discounted cash flow approach is used to take into account cash flows at different time points. Advance booking is made at the beginning of the inventory cycle at a discounted price until the time of stock arrival, followed by usual spot sales. The number of order cancellations during the advance booking period is dependent on the waiting time for receiving the order. The impact of revenue collected through advance sales is considered by including interest earned. Product demand is assumed to be the function of advertisement expenditure and the selling price of the product. A solution procedure is suggested, and the model is illustrated through numerical analysis, thereby providing valuable managerial insights based on the results obtained.

show abstract

“…Following He et al (2009) and Li et al (2013), it can be conjectured that that to compensate for the risk due to uncertainty, the stochastic model leads to lower greening effort and lower profits for the players. Lastly, the impact of green supply chains on product quality is another interesting area of research.…”

Section: 5mentioning

confidence: 99%

Price premium effect, supply contracts and strategic decision making under environmental considerations

Ramani

Swami

Ghosh³

2019

BIJ

View full text Add to dashboard Cite

Purpose The purpose of this paper is to study the impact of collaboration between supply chain entities in a dyadic setting where the manufacturer invests in greening and technology adoption effort leading to a price premium effect for the supply chain players. Design/methodology/approach The paper uses game theoretic approach to analyze the model of inter-firm interaction in a vertical channel setting consisting of a retailer and manufacturer. The paper studies strategic decisions of the channel members in a decentralized and centralized structure and extends this to decision making under contractual settings. Findings A two-part tariff completely coordinates the green supply chain, while a cost sharing and revenue sharing contract only achieve partial coordination. Nevertheless, a cost sharing, as well as a revenue sharing contract, increases the greening and technological adoption effort by the manufacturer while yielding the supply chain members a strictly larger profit. Furthermore, a revenue sharing contract in comparison to a cost sharing contract, leads to a larger greening and technological adoption effort by the manufacturer, lower wholesale and retail prices and a strictly larger profit for both the manufacturer and the retailer. Originality/value This paper contributes to the green supply chain pricing, technology and contract literature considering strategic interactions between a manufacturer and retailer in a supply chain under price premium effects of greening activities and technological advancements.

show abstract

Coordinating a Supply Chain with Price and Advertisement Dependent Stochastic Demand

Cited by 11 publications

References 29 publications

Design of a Green Supply Chain Based on the Kano Model Considering Pricing

Design of a Green Supply Chain Based on the Kano Model Considering Pricing

Optimal Pricing and Advertisement Policy for an Advance Order Booking Inventory System with Order Cancellation under Inflationary Condition

Price premium effect, supply contracts and strategic decision making under environmental considerations

Contact Info

Product

Resources

About