Coordination of a supply chain with a loss-averse retailer under supply uncertainty and marketing effort

Xie, Wenying; Chen, Bin; Huang, Fuyou; He, Jiangbiao

doi:10.3934/jimo.2020125

Cited by 11 publications

(11 citation statements)

References 50 publications

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“…Efficiency in channel I can be achieved due to a shorter marketing chain (Novita & Prajanti, 2020;Patel & Tsionas, 2022), because the longer the marketing chain and the more marketing agencies involved, the higher the marketing costs required (Kumse et al, 2021;Nurfadila et al, 2021). This is related to activities that include packaging, transportation and the existence of a loss in marketing or marketing loss(Siong Chung & Low, 2021; Xie et al, 2021).…”

Section: Marketing Channel Efficiencymentioning

confidence: 99%

Analysis of Marketing Chain of Vegetable Commodities in Around the Areas Affected by the Liquefaction Disaster

Syamdi¹,

Rauf²,

Efendy³

et al. 2022

IJRIAS

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Many factors cause why farmers do not have the ability to maintain their socio-economic life, mainly because it is difficult to obtain fresh funds, unavailability of production facilities and supporting factors such as fertilizers, superior seeds, counseling, and the low attention of local and central governments.Explorative and developmental research, which focuses on exploratory activities in providing an overview in mapping the profile of farmers, including the supply chain of vegetables sold to the capital city of Palu, the capital city of Central Sulawesi Province as well as a trading center and government. The research was carried out around the areas affected by the Jono Oge and Sidondo Earthquake and Liquefaction of Sigi Regency to look at the marketing chain and Palu City to see the supply chain at the Masomba and Manonda traditional markets, while to see the perpetrators of the trade system were traced based on the location of the traders and suppliers domiciled. To find out the suppliers in the traditional market, a careful identification is carried out so that the percentage (share) of suppliers outside Jono Oge can be known.The data analysis used in this research is descriptive.The longer the marketing chain in the tomato and chili vegetable trading system in the research area around Jono Oge and Sidondo which was affected by the earthquake and liquefaction, the more inefficient it will be. Thus, marketing channel I for both tomatoes and chilies is the one that gives a higher Farmer’s Share value and is more efficient than marketing channel II. All institutions involved in the marketing chain, from farmers, traders to retailers, carry out marketing functions, namely buying, selling, transportation, storage, processing, standardization and grading, financing, risk management, and market information. The margin share of producer farmers in each marketing channel for each tomato and chili is 84% and 89.74%, respectively.

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Section: Marketing Channel Efficiencymentioning

confidence: 99%

Analysis of Marketing Chain of Vegetable Commodities in Around the Areas Affected by the Liquefaction Disaster

Syamdi¹,

Rauf²,

Efendy³

et al. 2022

IJRIAS

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“…Meanwhile, business-to-business programs can be applied to moderately profitable customers [16], [17]. Finally, high-end services can be provided to highly profitable customers to increase trust and loyalty [18]- [21].…”

Section: Cmentioning

confidence: 99%

Segmentation using Customers Lifetime Value: Hybrid K-means Clustering and Analytic Hierarchy Process

Rahmadhan

Wasesa

2022

J. Inf. Syst. Eng. Bus. Intell.

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Background: Understanding customers’ electricity consumption patterns is essential for developing predictive analytics, which is needed for effective supply and demand management. Objective: This study aims to understand customers’ segmentation and consumption behaviour using a hybrid approach combining the K-Means clustering, customer lifetime value concept, and analytic hierarchy process. Methods: This study uses more than 16 million records of customers’ electricity consumption data from January 2019 to December 2020. The K-Means clustering identifies the initial market segments. The results were then evaluated and validated using the customer lifetime value concept and analytical hierarchy process. Results: Three customer segments were identified. Segment 1 has 282 business customers with a total capacity of 938,837 kWh, peak load usage of 27,827 kWh, and non-peak load usage of 115,194 kWh. Segment 2 has 508,615 business customers with a total capacity of 4,260 kWh, a peak load of 35 kWh, and a non-peak load of 544 kWh. Segment 3 has 37 business customers with a total capacity of 2,226,351 kWh, a peak load of 123.297 kWh, and a non-peak load of 390,803. Conclusion: A business strategy that could be taken is to base customer relationship management (CRM) on the three-customer segmentation. For the least profitable segment, aside from retail account marketing, a continuous partnership program is needed to increase electricity consumption during the non-peak period. For the highly and moderately profitable segments, a premium business-to-business approach can be applied to accommodate their increasing energy consumption without excessive electricity use in the peak period. Special account executives need to be deployed to handle these customers.

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“…Moreover, since supply chain risk managementhas received increasing attention over the past few decades (e.g., [35,36]), some researchers have incorporated supply uncertainty into the supply chain contract models. For example, Xie et al [37] propose a revenue-cost-sharing contract to study the supply chain with a loss-averse retailer, yield uncertainty, and marketing effort. Du et al [38] also consider a supply chain with yield risk, where both the supplier and retailer are loss-averse.…”

Section: Literature Reviewmentioning

confidence: 99%

“…where λ ≥ 1 reflects the degree of the loss aversion, and the retailer is loss-neutral when λ = 1. This function has been widely adopted in supply chain management due to its simplicity (e.g., [18,37,48,49]).…”

Section: Model Descriptionmentioning

confidence: 99%

Coping with Loss Aversion and Risk Management in the Supply Chain Coordination

et al. 2021

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In this paper, we apply a combined revenue sharing and buyback contract to investigate the channel coordination of a two-echelon supply chain with a loss-averse retailer. Since loss-averse decision makers usually take on more risks, the Conditional Value-at-Risk (CVaR) measure is introduced to hedge against it and the retailer’s objective is to maximize the CVaR of utility. We obtain the retailer’s optimal order quantity under the combined contract. It is shown that there is a unique wholesale price coordinating the supply chain if the retailer’s confidence level is less than a threshold that is independent of contract parameters. Moreover, a complete sensitivity analysis of parameters is carried out. In particular, the retailer’s optimal order quantity and coordinating wholesale price decreases as the loss aversion or confidence level increases, while it increase as the buyback price or sharing coefficient increases. Furthermore, there exists the situation where the combined contract can coordinate the chain even though neither the revenue sharing nor buyback contract can when the contract parameters are constrained.

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Coordination of a supply chain with a loss-averse retailer under supply uncertainty and marketing effort

Cited by 11 publications

References 50 publications

Analysis of Marketing Chain of Vegetable Commodities in Around the Areas Affected by the Liquefaction Disaster

Analysis of Marketing Chain of Vegetable Commodities in Around the Areas Affected by the Liquefaction Disaster

Segmentation using Customers Lifetime Value: Hybrid K-means Clustering and Analytic Hierarchy Process

Coping with Loss Aversion and Risk Management in the Supply Chain Coordination

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