Coordination with a backup supplier through buy-back contract under supply disruption

Hou, Jin-lin; Zeng, Amy Z.; Zhao, Lindu

doi:10.1016/j.tre.2010.03.004

Cited by 176 publications

(79 citation statements)

References 31 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…They focus on uncovering the effect of demand uncertainty on the implementation of buyback. Other buyback contract related studies include Choi et al (2008), Hsieh and Wu (2009), Gürler and Yılmaz (2010), Hou et al (2010), Ryu and Yücesan (2010), Chen (2011), Ai et al (2012), He and Zhao (2012), Shen and Willems (2012), Choi et al (2013), Shen et al (2013), Devangan et al (2013), Lee et al (2013), Wu (2013), Zhang et al (2014), Ohmura and Matsuo (2016). This paper is related to the above reviewed studies on buyback contracts as we also explore the use of buyback in achieving coordination.…”

Section: Buyback Contractsmentioning

confidence: 98%

Pareto Improving Supply Chain Coordination Under a Money-Back Guarantee Service Program

2017

View full text Add to dashboard Cite

Abstract. Money-back guarantee (MBG) is a well-known service offered by many retailers. Under the MBG policy, a purchased item by a consumer can be returned for a full refund. In this paper, we explore a supply chain (SC) system comprising of one retailer, which offers the money-back guarantee policy and faces a stochastic demand. With a given supply contract offered by the supplier, the retailer makes decisions on the order quantity and the market coverage of the money-back guarantee service. With reference to real-world practices, we examine three models, namely, (1) the traditional wholesale pricing model without the buyback contract, (2) the model with a buyback contract (between the supplier and the retailer) for unsold items, and (3) a dual-buyback (DB) contract model for both unsold and consumer returned items. We find that using the buyback contract alone for unsold items cannot achieve Pareto improving supply chain coordination, whereas the DB contract can. Numerical findings also indicate that the DB contract can lead to an expansion of the money-back guarantee service program to cover more customers. This paper's findings support the implementation of the DB contract, which is commonly seen in the industry, for efficient supply chain management in the presence of the money-back guarantee service program.

show abstract

Section: Buyback Contractsmentioning

confidence: 98%

Pareto Improving Supply Chain Coordination Under a Money-Back Guarantee Service Program

2017

View full text Add to dashboard Cite

show abstract

“…Qi et al [9] investigated a continuous-review inventory problem for a retailer who faces random disruptions both internally and externally (from its supplier). Hou et al [10] studied a buy-back contract between a buyer and a backup supplier when the buyer's main supplier experiences disruptions. Sargnt and Qi [11] studied a continuous-review inventory problem of a two-echelon supply chain with random supply and retailer disruption.…”

Section: Literature Reviewmentioning

confidence: 99%

Contract Coordination Strategy of Supply Chain with Substitution under Supply Disruption and Stochastic Demand

Yan¹,

Lu²,

Wu³

2016

Sustainability

View full text Add to dashboard Cite

Based on two substitute products, we study the inventory and contract coordination strategy of a three-echelon supply chain, which consists of two suppliers, a manufacturer and a retailer, under supply disruption and stochastic demand. We investigate the channel gross profit model of the centralized supply chain and obtain a unique optimal order quantity. Under a decentralized decision, we find that the commonly-used wholesale price contracts cannot coordinate the system. Then, we propose a buy-back contract and prove that this contract can more efficiently coordinate the system than the former. At last, we show that the integrated performance of the decentralized system can be maximized through choosing the buy-back parameter by the manufacturer and reveal that the effects of supply uncertainty and the substitution behavior of customers on the optimal decision by numerical examples.

show abstract

“…Hou et al (2010) consider dual sourcing with a backup supplier under supply risk and investigate coordination with a buy-back contract. They consider two types of risk, namely disruption risk which results in a complete non-delivery and recurrent risk which is reected in an uncertain delivery volume.…”

Section: Focus On Dual Sourcingmentioning

confidence: 99%

The Economic and Environmental Sustainability of Dual Sourcing

Rosic¹

2012

View full text Add to dashboard Cite

Coordination with a backup supplier through buy-back contract under supply disruption

Cited by 176 publications

References 31 publications

Pareto Improving Supply Chain Coordination Under a Money-Back Guarantee Service Program

Pareto Improving Supply Chain Coordination Under a Money-Back Guarantee Service Program

Contract Coordination Strategy of Supply Chain with Substitution under Supply Disruption and Stochastic Demand

The Economic and Environmental Sustainability of Dual Sourcing

Contact Info

Product

Resources

About