Pricing Strategies for Competitive Water Supply Chains under Different Power Structures: An Application to the South-to-North Water Diversion Project in China

Du, Wenyi; Fan, Yubing; Yan, Lingling

doi:10.3390/su10082892

Cited by 17 publications

(14 citation statements)

References 33 publications

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“…These issues are under the guidance of retailers rather than under the same authorization. However, with some retailers, such as Wal Mart and Carrefour, entering the Chinese market, the market power of retailers has been expanding, and the supply chain mode dominated by the retailer has gradually emerged [50]. For example, in today's society, there are not only power control structures dominated by manufacturers, such as Lenovo and Haier, but also power control structures dominated by a retailer, such as Suning and Gome.…”

Section: Operation and Revenue-sharing In A Low-carbon Supply Chainmentioning

confidence: 99%

Green Supply Chain Decisions Under Different Power Structures: Wholesale Price vs. Revenue Sharing Contract

Liu

Sun

2020

IJERPH

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In the market, once consumers have a low-carbon preference, they will choose green low-carbon products. The market demand for green products is not only related to product price, but also consumers’ low-carbon preference. In this way, enterprise has to consider the cost of carbon emissions in the process of production and operation. In this paper, we consider a two-level supply chain system composed of a manufacturer and a retailer. The supply chain system can determine the price of products and the level of carbon emission reduction through different supply chain contracts: wholesale price contract and revenue sharing contract. However, the power control structure of a manufacturer and a retailer is different, which will further affect the decision-making strategy of the supply chain system. We set up four models (Wholesale Price—NM and NR, and Revenue-Sharing—SR and SM) of the supply chain with carbon emission reduction, and calculated and analyzed. The results show that firstly, regardless of whether the manufacturer's power control structure or the retailer power structure is dominant, the manufacturer wholesale price with a contract on revenue-sharing is always higher than on wholesale price, and it is inversely proportional to the revenue-sharing proportion. Secondly, under the two power control structures, the carbon emission level of the manufacturer with a contract on revenue-sharing is always lower than on wholesale price, and it gradually decreases with the increase of the revenue-sharing proportion of the manufacturers. Thirdly, when the retailer dominates the supply chain, the retailer selling price with a contract on revenue-sharing is always higher than on wholesale price. Under the manufacturer's power control structure, when the revenue-sharing ratio is small, the retailer selling price with a contract on revenue-sharing is higher than on wholesale price; when the revenue-sharing ratio is large, the retailer selling price with a contract on revenue-sharing is lower than on wholesale price. Finally, the validity of the model is verified by an example, and the sensitivity of the parameters is analyzed.

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Section: Operation and Revenue-sharing In A Low-carbon Supply Chainmentioning

confidence: 99%

Green Supply Chain Decisions Under Different Power Structures: Wholesale Price vs. Revenue Sharing Contract

Liu

Sun

2020

IJERPH

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“…For our research topic, we should also deeply explore recent literature in terms of the impact of risk preference on water supply chain. Du et al [44] considered risk preference of water supplier and water distributor in order to study water pricing strategies in two competitive water supply chains. However, they assumed that the water supplier and water distributor were risk-neutral and acted rationally.…”

Section: Literature Reviewmentioning

confidence: 99%

Decision-Making Optimization of Risk-Seeking Retailer Managed Inventory Model in a Water Supply Chain

Hou

Xin

2021

Discrete Dynamics in Nature and Society

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Water retailer managed inventory is a classical and inevitable inventory management mode in present economic society. Stochastic models can more clearly explain demand uncertainty and are closely related to water supply chains. Risk preferences are widely valued in behavioral operation management. Related to the risk preferences in inventory management, the research on risk aversion is dominant, while risk-seeking is insufficient. Based on the model assumptions, the risk-seeking retailer’s optimal decision-making inventory model with stochastic demand in a water supply chain is studied. The risk-seeking retailer’s optimal inventory quantity, optimal inventory cost, supplier profit, retailer profit, and the profit of the entire water supply chain are derived. The validity of the equations is proved. The sensitivity analysis of the risk-seeking retailer’s optimal inventory decision-making is carried out. The risk level effects on the five dimensions, the retail price, wholesale price, unit shortage cost, unit inventory cost, and unit residual value, are displayed through numerical simulation. The optimal inventory quantity and optimal inventory cost of the risk-seeking retailer are obtained.

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“…It was not for the lake of the SNWD water, but because of the water-dispatching rule, i.e., the SNWD water was only used for domestic purpose. Research showed that the cost of SNWD water is 2.21 Yuan/m 3 [27][28][29]. It is the most expensive among all kinds of water resources.…”

Section: The Guarantee Effect Of the Snwd Projectmentioning

confidence: 99%

Effects of the South-North Water Diversion Project on the Water Dispatching Pattern and Ecological Environment in the Water Receiving Area: A Case Study of the Fuyang River Basin in Handan, China

Yang

2019

Water

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Inter-basin water transfer projects are widely used in water-stressed areas. North China is facing severe imbalance between water demand and water supply. The South-to-North Water Diversion (SNWD) Project was built to transfer water from the Yangtze River Basin to the Hai River Basin. The Fuyang River Basin in the southern part of the Hai River Basin, passing through the Handan city, was chosen as the study area. To identify the effects of the SNWD Project on the water-receiving area, this paper used the decision support system AQUATOOL to simulate the water-dispatching scheme while using the water from the SNWD Project for domestic need in different level years. The results indicate that the SNWD Project provided 128.32 × 106 m3 of water in a wet year, 109.88 × 106 m3 in a normal year and 135.14 × 106 m3 in a dry year to this area. The added quantity of recycled water is 56.75 × 106 m3, 50.59 × 106 m3 and 57.52 × 106 m3, respectively. The water shortage in normal years was covered by the SNWD Project and the water shortage in dry years was reduced by 62.4%. Local environment was improved because of the SNWD Project, i.e., the SNWD water replaced and reduced the use of groundwater and increased the inflow to the Fuyang River and the Yongnian Wetland by increasing the recycled water. This research has demonstrated the SNWD Project has started to play a key role in securing water use and improving the environment in the water-receiving area since its completion in 2014.

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Pricing Strategies for Competitive Water Supply Chains under Different Power Structures: An Application to the South-to-North Water Diversion Project in China

Cited by 17 publications

References 33 publications

Green Supply Chain Decisions Under Different Power Structures: Wholesale Price vs. Revenue Sharing Contract

Green Supply Chain Decisions Under Different Power Structures: Wholesale Price vs. Revenue Sharing Contract

Decision-Making Optimization of Risk-Seeking Retailer Managed Inventory Model in a Water Supply Chain

Effects of the South-North Water Diversion Project on the Water Dispatching Pattern and Ecological Environment in the Water Receiving Area: A Case Study of the Fuyang River Basin in Handan, China

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