Two-period pricing and strategy choice for a supply chain with dual uncertain information under different profit risk levels

Liu, Zhibing; Gao, Rong; Zhou, Chi; Ma, Nana

doi:10.1016/j.cie.2019.07.029

Cited by 26 publications

(15 citation statements)

References 29 publications

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“…In addition, there are chances for mixing counterfeit products when there is no direct visibility for Original Equipment Manufacturers (OEM) with tier-2 suppliers [36,37]. The problem of differential pricing comes into the picture as they generally prefer concealing their pricing since this allows them to pay lower prices when outsourcing to developing countries [38][39][40]. As numerous parties are involved, mediating between these parties can pose a critical problem for logistics providers such as slowing down the delivery of services and creating a large overhead for logistics.…”

Section: Issues In Traditional Supply Chainmentioning

confidence: 99%

Blockchain Technology for Enhancing Traceability and Efficiency in Automobile Supply Chain—A Case Study

et al. 2021

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A robust traceability system would help organizations in inventory optimization reduce lead time and improve customer service and quality which further enables the organizations to be a leader in their industry sector. This research study analyzes the challenges faced by the automotive industry in its supply chain operations. Further, the traceability issues and waiting time at different nodes of the supply chain are considered to be priority issues that affect the overall supply chain efficiency in the automotive supply chain. After studying the existing blockchain architectures and their implementation methodology, this study proposes a new blockchain-based architecture to improve traceability and reduce waiting time for the automotive supply chain. A hyper ledger fabric-based blockchain architecture is developed to track the ownership transfers in inbound and outbound logistics. The simulation results of the proposed hyper ledger fabric-based blockchain architecture show that there is an improvement in the traceability of items at different nodes of the supply chain that enhances the Inventory Quality Ratio (IQR) and the mean waiting time is reduced at the factory, wholesaler, and retailer, which thereby improves the overall supply chain efficiency. The blockchain embedded supply chain is more capable to eliminate the risks and uncertainties associated with the automotive supply chain. The benefits of adopting blockchain technology in the automotive supply chain are also described. The developed blockchain-based framework is capable to get more visibility into goods movement and inventory status in automotive supply chains.

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Section: Issues In Traditional Supply Chainmentioning

confidence: 99%

Blockchain Technology for Enhancing Traceability and Efficiency in Automobile Supply Chain—A Case Study

et al. 2021

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“…There is abundant literature on dynamic pricing strategies for perishable products. Dynamic pricing implements pre-announcement pricing and response pricing in multiple periods with or without consideration of inventory (Liu et al, 2019). Cachon & Swinney (2009) considered how retailers make decisions on purchase and pricing under responsive pricing when strategic consumers appear in a limited selling season.…”

Section: Literature Reviewmentioning

confidence: 99%

“…When demand is dependent on price, Maiti & Giri (2017) considered the policy of two-period pricing in the two-echelon supply chain. Liu et al (2019) looked into the problems of market demand uncertainty and product review uncertainty, and their impacts on two-period pricing strategies for supply chains with uncertain retailers and suppliers. Yan et al (2021) explored the optimal ordering and coordination problem in a two-stage fresh agricultural produce supply chain, and the effect of the two-period price on the optimal ordering decision-making and profits in the supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

Decisions and coordination of retailer-led fresh produce supply chain under two-period dynamic pricing and portfolio contracts

Yan

Han

2022

RAIRO-Oper. Res.

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Fresh agricultural produce is almost the staple food and necessity of people's daily diet all over the world. However, natural perishability and freshness affect the demand for fresh agricultural produce. Due to the change of freshness, the retailer has to adopt a multi-period dynamic pricing strategy to deal with unsold products. The research object of this paper is the retailer's two-echelon supply chain of fresh agricultural produce, and the aim is to achieve the optimal two-period coordination and ordering through options and wholesale contracts in the supply chain. In the case of two-period pricing, we find that the optimal wholesale order quantity increases with the decline of the price in the first period and tends to be stable with the decline of the price in the second period. In contrast, the price change in the first period has a greater impact on the retailer's optimal order quantity. The profits of both the retailer and the supplier increase significantly with the increase of the price in the first period, while the impact of the change of the price in the second period is not obvious. Meanwhile, decentralized decision-making can only be coordinated in the supply chain through the original option contract at the first-period price. In the second period, the cost-sharing contract is introduced to coordinate the supply chain, increase orders, and increase the profits of both the retailer and the supplier. These findings are of great significance for both the retailer and the supplier in the multi-period dynamic pricing of fresh produce under the option contract.

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“…Liu et al. (2019) propose a two‐period pricing model based on the profit risk level, and study the strategic choice of supply chain members under the condition of uncertain basic market demand and uncertain product evaluation. However, these studies ignore information asymmetry in supply chain management.…”

Section: Literature Reviewmentioning

confidence: 99%

Two‐period information‐sharing and quality decision in a supply chain under static and dynamic wholesale pricing strategies

Zhao

Hou

Lin

et al. 2021

Int Trans Operational Res

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We consider a one‐to‐one supply chain consisting of a manufacturer and a retailer and study the retailer's two‐period information‐sharing decision problem. We develop a game‐theoretic model wherein the manufacturer produces a product at a certain level of quality to the retailer at a static wholesale price or at dynamic wholesale prices over two periods. The retailer determines whether to share the market demand information with the manufacturer. Conventional wisdom suggests that the retailer prefers not to share the information because of the double marginalization effect. Under the two‐period setting, we show that the retailer may disclose information to the manufacturer voluntarily. Specifically, if the manufacturer adopts the static wholesale pricing strategy, sharing (no) information over two periods is beneficial for the retailer when the quality cost coefficient is low (high). If the manufacturer implements the dynamic wholesale pricing strategy, it is beneficial for the retailer to share information only in the first period when the quality cost coefficient is moderate. When the quality cost coefficient is sufficiently low (high), the retailer prefers to share (no) information for both periods. Our result suggests that the manufacturer always benefits from the information‐sharing, that is, a “win‐win” outcome for the retailer and manufacturer may be achieved under certain conditions, which stands in sharp contrast to the literature on information‐sharing.

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Two-period pricing and strategy choice for a supply chain with dual uncertain information under different profit risk levels

Cited by 26 publications

References 29 publications

Blockchain Technology for Enhancing Traceability and Efficiency in Automobile Supply Chain—A Case Study

Blockchain Technology for Enhancing Traceability and Efficiency in Automobile Supply Chain—A Case Study

Decisions and coordination of retailer-led fresh produce supply chain under two-period dynamic pricing and portfolio contracts

Two‐period information‐sharing and quality decision in a supply chain under static and dynamic wholesale pricing strategies

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