Ordering and pricing model of retailers’ preventive transshipment dominated by manufacturer with conditional return

Bin, Dan; He, Qingren; Zheng, Kaiwei; Liu, Ru

doi:10.1016/j.cie.2016.07.024

Cited by 18 publications

(10 citation statements)

References 24 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…For a decentralized system, Liao et al [12] studied the optimal lateral transfer and replenishment decisions, and a multistage stochastic model is established to capture demand uncertainty and customer switching behavior. Dan et al [13] developed a preventive transshipment policy for two independent retailers that are dominated by the manufacturer. Feng et al [14] proved the existence and uniqueness of the ordering Nash equilibrium and proposed a more economical transshipment policy.…”

Section: Literature Reviewmentioning

confidence: 99%

Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour

Shi

Tang

2021

Discrete Dynamics in Nature and Society

Self Cite

View full text Add to dashboard Cite

The interaction of a hybrid transshipment policy and customer switching behaviour will exacerbate the complexity of the structure of a hybrid transshipment policy. To cope with this problem, a discrete-time dynamic programming model framework with customer switching behaviour is developed. Based on this framework, we demonstrate that the retailer can obtain more profits with a hybrid transshipment than without one. Next, the existence of a reactive and preventive transshipment policy is shown, respectively. We further analyse the structural property of the holdback policy of reactive transshipment and give the threshold of customer switching rate when always rejecting the request. Meanwhile, a dominant preventive transshipment policy is formulated by which the retailer can control the inventory regardless of the influence of the preventive transshipment policy of the other as long as the inventory is observed by developing an easy-to-implement optimal hybrid transshipment strategy. In addition, the existence of an ordering Nash equilibrium of two retailers is proven. Then, we also illustrate the existence of a transshipment area and analyse the impact of the transshipment cost and switching rate on ordering, the hybrid transshipment policy, and profit by using numerical examples. Finally, we find that the retailer is more willing to adjust inventory by ordering when there is a lower transshipment price and adjust inventory by hybrid transshipment when there is a higher transshipment price.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour

Shi

Tang

2021

Discrete Dynamics in Nature and Society

Self Cite

View full text Add to dashboard Cite

show abstract

“…Yoo (2014) explored the connection between a return mechanism and commodity's quality in presence of a decentralized supply network and concluded that improving commodity's quality directly influences the amount of commodity's returns. In addition, there are some researches executed in this area to examine price decisions with different circumstances like Taleizadeh et al (2015b), Dan et al (2016), Jingxian et al (2017), Noori-daryan et al (2018, Mokhlesian and Zegordi (2018), Gamasaee and Fazel Zarandi (2018).…”

Section: Literature Reviewmentioning

confidence: 99%

Manufacturing and selling tactics for a green supply chain under a green cost sharing and a refund agreement

Taleizadeh

Noori-daryan

Sana

2020

JM2

View full text Add to dashboard Cite

Purpose This paper aims to deal with optimal pricing and production tactics for a bi-echelon green supply chain, including a producer and a vendor in presence of three various scenarios. Demand depends on a price, refund and quality where the producer controls quality and the vendor proposes a refund policy to purchasers to encourage them to order more. Design/methodology/approach In the first scenario, the members seek to optimize their optimum decision variables under a centralized decision-making method while in the second scenario, a decentralized system is assumed where the members make a decision about variables and profits under a non-cooperative game. In the third scenario, a cost-sharing agreement is concluded between the members to provide a high-quality item to the purchasers. Findings The performance of the proposed model is investigated by illustrating a numerical example. A sensitivity analysis of some key parameters has been done to study the effect of the changes on the optimal values of the decision variables and profits. From sensitivity analysis, the real features are observed and mentioned in this section. Originality/value This research examines the behavior of partners in a green supply chain facing with a group of purchasers whose demand is the function of a price, greenery degree and refund rate. This proposed mathematical model is developed and analyzed which has an implication in supply chain model.

show abstract

“…Our research considers the downstream sharing policy when the return option is available in a consignment contract, additionally, we identify the effects of the return policy on sharing decisions. Dan et al (2016) construct a two-period model with a manufacturer and retailers where the preventative manufacturer-dominated inventory transshipment policy happens in retailers. Under this setting, they also investigate the impacts of return constraint on pricing and ordering decisions.…”

Section: Literature Reviewmentioning

confidence: 99%

Coordinating inventory sharing with retailer's return in the consignment contracts

Zhang

Pang

Yan

2020

International Journal of Production Research

View full text Add to dashboard Cite

Hospitals purchase medical supplies from the dealer on consignment contracts. Dealer provides return policy for unused inventory but charging a return fee. Two hospitals could share inventory which reduces the amount of return to the dealer. Motivated by this consignment contract policy for the medical supply chain, we develop a common dealer and two independent retailers framework that considers retailers' sharing action and return problem. We aim at developing a coordinating mechanism to manage the retailers' sharing and return action that benefits both the dealer and retailers. The dealer-dominated sharing and retailer-dominated sharing are compared from the perspective of sharing performance and expected profits.We also analyze the condition that dealer is better off from retailers' sharing when the dealer has the power to encourage retailers' sharing, and the dealer's trading preference for a non-cooperative retailer or cooperative retailers when the dealer has no power to encourage retailers' sharing. Numerical experiments are conducted to examine the sensitivity of retailers' sharing decisions, retailers' and dealer's profit to the return price.

show abstract

Ordering and pricing model of retailers’ preventive transshipment dominated by manufacturer with conditional return

Cited by 18 publications

References 24 publications

Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour

Hybrid Transshipment Policy and Ordering Model for Multiple Periods with Customer Switching Behaviour

Manufacturing and selling tactics for a green supply chain under a green cost sharing and a refund agreement

Coordinating inventory sharing with retailer's return in the consignment contracts

Contact Info

Product

Resources

About