Pricing decision for new and remanufactured product in a closed-loop supply chain with separate sales-channel

Gan, Shu–San; Pujawan, I Nyoman; Suparno,; Widodo, Basuki

doi:10.1016/j.ijpe.2016.08.016

Cited by 183 publications

(68 citation statements)

References 68 publications

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“…Their results indicated that the customer's direct-channel preference had the opposite effect on the profit of supplier and retailer. Gan et al [11] presented pricing decisions and profits of supply chain members in a closed-loop supply chain and considered the parameter of customer's direct channel preference as a key factor. Different from the above mentioned literatures, this paper discusses the decision-making of wholesale prices and sales commissions for manufacturer and retailers based on the bounded rationality expectation by employing complexity theory to explore the effect of the adjustment speed of the above variables on the system stability.…”

Section: Introductionmentioning

confidence: 99%

Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

Tian

Lou

2018

Complexity

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At present, most of the manufacturers are increasingly laying emphasis on dual-channel selling. The level of consumer's preference is diverse with different channels. This study discusses a supply chain where one common manufacturer uses two different channels to sell product. The bounded rationality expectation has been applied to explore the decision-making mechanism in finalizing the wholesale prices and sales commissions for the manufacturer and retailers. In addition, the dynamic features of the system are simulated by 2D bifurcation diagram, the largest Lyapunov exponent, attractor variation, and time series. The simulation results suggest that if the adjustment speeds of the wholesale prices and sales commissions change drastically, the system would fall into a chaotic state. If the consumers prefer the online channel, the wholesale prices and sales commissions may be raised and vice versa. However, too strong preference of each channel will make the system appear to have a considerably periodic fluctuation, even chaos. In the meantime, the parameter adjustment method can help make the periodic or chaotic system go back to stability. Therefore, the significance of this study is with a practical meaning to make better pricing strategy for players in dual-channel selling supply chain system.

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Section: Introductionmentioning

confidence: 99%

Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

Tian

Lou

2018

Complexity

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“…Today, supply chains face competition among sales channels as well as competition among brands. Gan, S.-S., et al (2016) [1] shows that implementing a separate channel such the internet channel can improve the total supply chain's profit compared to the single-channel approach. Recently, considerable researches have been conducted on the impact of internet-based sales channels and their pricing strategies.…”

Section: Introductionmentioning

confidence: 99%

“…In Europe, around 5.5 to 6.5 Million tons of electrical materials waste is produced annually and is anticipated to increase 16-28% annually (Georgiadis, 2010) [7]. Remanufacturing is a recovery process that transforms a used product (second hand product) into a "like-new" product (Gan, S.-S., et al (2016) [1]). Gan, S.-S., et al (2016) [1] have developed a pricing decision model for short life-cycle products in a closedloop supply chain that consists of the manufacturer, retailer, and collector.…”

Section: Introductionmentioning

confidence: 99%

“…Remanufacturing is a recovery process that transforms a used product (second hand product) into a "like-new" product (Gan, S.-S., et al (2016) [1]). Gan, S.-S., et al (2016) [1] have developed a pricing decision model for short life-cycle products in a closedloop supply chain that consists of the manufacturer, retailer, and collector. In this study the new product is sold via traditional retail stores and the remanufactured product is sold via the manufacturer's direct channel.…”

Section: Introductionmentioning

confidence: 99%

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tModeling and analyzing pricing and inventory problem in a closed loop supply chain with return policy and multiple manufacturers and multiple sales channels using game theory

2017

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Abstract:This paper focuses on determining ordering and pricing policies in a single-period closed loop supply chain. The assumed supply chain includes a number of manufacturers who provide their different but substitutable products for their customers via a common retailer; however the manufacturers can have their own internet-based sales channel in order to provide products for the customers. The customers can return products if they are not satisfied with. The return products are collected in a repair center, are repaired and sold as second-hand product through the retailer channel or through an internet-based sale channel. The customer demand is assumed to be stochastic. This study aims to determine the optimum prices for the internet-based and retailer sales channels for the initial and second hand products. It also tries to determine the optimal values of retailer order and production rates of manufacturers and repair centers. Three types of game strategies for the supply chain including Nash, Stackelberg game with retailer as the leader and Stackelberg game with manufacturers and repair center as the leaders are studied in decentralized condition. The analytical equilibrium solutions, equations and constraints are extracted for these strategies. Finally, the effect of variations in key parameter is investigated.

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“…They also investigate the effect of diffusion rate in a time-dependent demand. Furthermore, Gan et al [15] extend their work to consider separate sales channel, where new product is sold via retailer, and remanufactured product is offered under manufacturer's direct channel such as factory outlet or online store [16].…”

Section: Introductionmentioning

confidence: 99%

Pricing and Warranty Level Decisions for New and Remanufactured Short Life-Cycle Products

San

Pujawan

2017

jti

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Abstract:Remanufacturing has become more prominent as a recovery process to mitigate the massive disposal of short life-cycle product at its end-of-use. However, remanufactured product is often perceived to be inferior to new product, and it has lower value in consumer's willingness to pay. To increase the perceived quality of the remanufactured product, manufacturer offers a warranty, since one of the three roles possessed in warranty is being a signal to product reliability. This paper studies the pricing decisions and warranty level decision for new and remanufactured products in a closed-loop supply chain consists of a manufacturer and a retailer. The optimization modeling is performed under Stackelberg game with manufacturer as the leader. We found that higher expansion effectiveness coefficient would increase the supply chain profit. Also, there is an interval of demand's speed of change, where the total profit would be at its highest. The optimum warranty level can be achieved regardless the initial warranty level set at the beginning of retailer's optimization. Furthermore, the remanufactured product's wholesale and retail prices are influenced by the expansion effectiveness coefficient.

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Pricing decision for new and remanufactured product in a closed-loop supply chain with separate sales-channel

Cited by 183 publications

References 68 publications

Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

tModeling and analyzing pricing and inventory problem in a closed loop supply chain with return policy and multiple manufacturers and multiple sales channels using game theory

Pricing and Warranty Level Decisions for New and Remanufactured Short Life-Cycle Products

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