Pricing decisions in a multiechelon supply chain under a bundling strategy

Eghbali-Zarch, Maryam; Taleizadeh, Ata Allah; Tavakkoli–Moghaddam, Reza

doi:10.1111/itor.12672

Cited by 18 publications

(8 citation statements)

References 41 publications

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“…The net utilities of the consumer who purchases the 1P and 3P products are

u_{r} = θ_{r} v - p_{r}

and

u_{s} = θ_{s} v - p_{s}

, respectively. Here,

θ_{i} false(i = {r, s} false)

represents consumers' channel preferences or the WTP for the product, v is the product valuation for consumers (assumed to follow the uniform distribution U [0, 1]; Eghbali‐Zarch et al., 2019; Jiang et al., 2020; Lei et al., 2020), and

p_{r}

(p_{s})

is the price of the 1P (3P) product. Following Mantin et al.…”

Section: Model Fundamentalsmentioning

confidence: 99%

The bright side of third‐party marketplaces in retailing

Zheng

2021

Int Trans Operational Res

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A prevalent practice for retailers is to provide a marketplace for third‐party sellers (3P sellers) to sell products directly to consumers, charging the sellers a commission fee. This study investigates the downstream retailer's optimal strategy to introduce a 3P seller who sells a substitutable product. We develop a game‐theoretic model, through which our first result shows that the retailer introduces a 3P seller only when the marginal costs of the products are in a medium range. Second, the retailer's strategy of introducing a 3P seller may benefit the manufacturer, even though the introduction creates downstream competition that may reduce the sales of the manufacturer's product. This happens because the strategy of introducing a 3P seller can mitigate the double marginalization between the manufacturer and retailer. In contrast to the conventional wisdom that introducing a 3P seller always results in a “win–lose” outcome for the retailer and manufacturer, we derive evidence that introducing a 3P seller can lead to a “win‐win” outcome for the retailer and manufacturer and thus improve the channel performance. Lastly, we find that the retailer's 3P seller introduction strategy can also improve the consumer surplus because this strategy increases competition.

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“…The net utilities of the consumer who purchases the 1P and 3P products are

u_{r} = θ_{r} v - p_{r}

and

u_{s} = θ_{s} v - p_{s}

, respectively. Here,

θ_{i} false(i = {r, s} false)

p_{r}

(p_{s})

is the price of the 1P (3P) product. Following Mantin et al.…”

Section: Model Fundamentalsmentioning

confidence: 99%

The bright side of third‐party marketplaces in retailing

Zheng

2021

Int Trans Operational Res

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“…The M-S collaborative mode has been increasingly popular in the applications of various kinds of supply chain areas, including the textile and clothing industry [23], environmental sustainability [24,25], and integration of raw materials [26], attracting increasing researches on it. Most of the literatures focus on the application of the R&D process of the complex product.…”

Section: M-s Collaborative Modementioning

confidence: 99%

Evolutionary game analysis of problem processing mechanism in new collaboration

Zhang

Zhu

Wang

2021

J. of Syst. Eng. Electron.

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This paper analyzes a problem processing mechanism in a new collaboration system between the main manufacturer and the supplier in the "main manufacturer-supplier" mode, which has been widely applied in the collaborative development management of the complex product. This paper adopts the collaboration theory, the evolutionary game theory and numerical simulation to analyze the decision-making mechanism where one upstream supplier and one downstream manufacturer must process an unpredicted problem without any advance contract in common. Results show that both players ' decision-makings are in some correlation with the initial state, income impact coefficients, and dealing cost. It is worth noting that only the initial state influences the final decision, while income impact coefficients and dealing cost just influence the decision process. This paper shows reasonable and practical suggestions for the manufacturer and supplier in a new collaboration system for the first time and is dedicated to the managerial implications on reducing risks of processing problems.

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“…Second to labor costs, hospital supplies are the largest expenses for health systems. Hospitals continue to work with distributors to find more cost‐effective means to distribute and store physician preference items (PPI) inventory (Eghbali‐Zarch et al., 2019; Huang, 2021). Devices and supplies are often shipped by courier, accompanied by hefty shipping and handling fees associated with distribution.…”

Section: Introductionmentioning

confidence: 99%

Impacts of distributors and group purchasing organizations on hospital efficiency and profitability: a bilateral data envelopment analysis model

Lee

Langdo

Hwang

et al. 2021

Int Trans Operational Res

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Total health care expenses have risen significantly in the United States. There are many factors and variables that can impact hospital operating efficiencies. Among them, engaging a distributor or group purchasing organization (GPO) is one method to influence efficiency throughout the entire supply chain. This research investigates the impact of distributors and GPOs on hospital efficiency and profitability. The data from the 2015 American Hospital Association (AHA) Annual Hospital Survey of which 6251 hospitals participated are used. These hospitals were separated by those who purchased supplies through a distributor and those who did not. Likewise, the same was performed for those hospitals that used GPO and those that did not. This study employs DEA-Solver software to develop four types of bilateral DEA models. The results of the DEA model use a ranking variable (rank sum) to rank the variables within the two groups (distributor and no distributor) to determine if there is a significant difference between distributor and nondistributor. The same is performed for GPO and non-GPO. We examined the impact of the several control variables on hospital efficiency for distributors and GPOs. Results indicate that the control variables (region, education, profit/nonprofit, government/nongovernment, and system/nonsystem) made a significant difference for hospitals that used a distributor and a GPO. Lessons and implications are discussed for future research issues, such as quality of patient care and a frontier production function.

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Pricing decisions in a multiechelon supply chain under a bundling strategy

Cited by 18 publications

References 41 publications

The bright side of third‐party marketplaces in retailing

The bright side of third‐party marketplaces in retailing

Evolutionary game analysis of problem processing mechanism in new collaboration

Impacts of distributors and group purchasing organizations on hospital efficiency and profitability: a bilateral data envelopment analysis model

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