Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain

Shan, Haiyan; Zhang, Chen; Wei, Guo

doi:10.3390/su12041331

Cited by 16 publications

(13 citation statements)

References 45 publications

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“…Lastly, according to Theorem 3.6 p * M and p * A are decreasing in s if p * M > (2w − s) + 2γλ(w − c), which is similar to Theorem 4 (referred to [53]) in the presence of risk aversion. Besides, salvage value s is increasing in e * M and e * A .…”

Section: Lcad Modelsupporting

confidence: 58%

“…As a matter of fact, many contributions have formulated the form of low-carbon effort level based on the traditional linear demand [43,35]. Generally speaking, an additive term with the form of linearity is introduced into the demand function [61,53]. However, current contributions are mostly focusing on the deterministic market demand or special demand forms (such as linear, power or exponential demand, etc.)…”

mentioning

confidence: 99%

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Low carbon joint strategy and coordination for a dyadic supply chain with Nash bargaining fairness

Chen

Sun

Zhang

et al. 2023

JIMO

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<p style='text-indent:20px;'>In the paper, fairness concern criterion is utilized to explore the coordination of a dyadic supply chain with a fairness-concerned retailer (acting as a newsvendor), who is committed to low carbon efforts. Two models are developed for stochastic demand disturbances in the forms of multiplicative case and additive case, respectively. Firstly, the optimal joint decision of the retailer and the supply chain are proposed in two scenarios, i.e., decentralized decision and the centralized decision. Secondly, in order to realize channel coordination, the contract of revenue sharing combined with the mechanism of low-carbon cost sharing is designed. Moreover, the influences of the retailer's fairness concern and bargaining power on the joint decision and the contract parameters are also investigated. Finally, numerical examples are given to illustrate the theoretical results and some suggestions to supply chain management are also provided. The results show that the revenue sharing contract can make the supply chain achieved coordination with the cost sharing mechanism of low-carbon efforts. Furthermore, the optimal low-carbon effort level and ordering quantity decrease in terms of fairness-concerned parameter and Nash bargaining power parameter, which increases in unit cost. However, the optimal pricing makes the opposite change.</p>

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Section: Lcad Modelsupporting

confidence: 58%

mentioning

confidence: 99%

Low carbon joint strategy and coordination for a dyadic supply chain with Nash bargaining fairness

Chen

Sun

Zhang

et al. 2023

JIMO

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“…The effect of trade credit on the pricing of complementary products was analyzed by Ren et al [56]. Shan et al [57] studied a green supply chain by investigating the optimal pricing strategy for complementary products.…”

Section: Pricing Of Complementary Productsmentioning

confidence: 99%

Pricing of Complementary Products in Online Purchasing under Return Policy

Taleizadeh

Beydokhti

Cárdenas–Barrón

et al. 2021

JTAER

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In online purchasing, customers may return products due to dissatisfaction with the quality of the product, and receive a refund based on the return policy, which is determined by online distributors. Online distributors can offer generous policies to attract more customers, but at the cost of reducing total profits. In this paper, the effect of the pricing and quality of complementary products (products sold together with other items) in online selling under the return policy is investigated. For this purpose, a mathematical model is developed to obtain optimal values for selling price, refund amount, and quality of products. Based on analytical results, a solution algorithm is proposed to solve the numerical examples and perform sensitivity analysis. Findings reveal that, while increasing the sensitivity of demand with respect to the refund amount, the price, quality, and refund on returned products should be increased. In addition, the online distributor should increase the quality of products when customers are more sensitive to the quality of products. Among other results, the selling price is shown to be negatively affected by demand elasticity with respect to price. In this situation, the online distributor should reduce the quality level and the refund amount for returned products to avoid a sharp decline in profit. In addition, when the quality cost is high, the price and quality should be decreased and the refund amount unchanged.

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“…Sarkar and Bhadouriya (2020) [49] studied manufacturer competition and collusion in a two-echelon green supply chain with production trade-off between non-green and green quality. Shan et al (2020) [50] constructed three pricing models to simultaneously analyze the changes in the optimal profits of supply chain members and the optimal degree of green manufacturing of complementary products. Li et al (2020) [51] introduced a strategy-structure-performance framework to explore the mechanism through which proactive environmental strategies improve environmental performance by using green supply chain integration.…”

Section: Cooperation Of Green Supply Chainmentioning

confidence: 99%

Coordination of Store Brand Product’s Green Supply Chain Based on Negotiation

et al. 2020

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The environmental input of a store brand product’s green supply chain plays an important role in improving the product brand image and expanding the product demand. According to the difference of the initial one-off environmental investment of the store brand product, it can be divided into three modes: direct OEM, retailer’s full participation and retailer’s partial participation. The research methods employed in this study include model establishment, numerical analysis and comparison under three entrustment modes based on retailers’ negotiation strength. In addition, sensitivity analysis was used to test the influence of parameter variations on the results. The research results show that: (i) the direct OEM mode is the best choice for retailers when the retailer is in a weak position, but it is not the best choice for the manufacturer. With the increase of the retailers’ negotiation strength, the profits of both sides will decline, causing the problem of double marginal profit decreasing; (ii) the retailer’s full participation mode is the best choice for the manufacturer when the retailer is in a strong position, but not the best choice for the retailer. It is not the best choice for both sides when the retailer is in a weak position; (iii) the greenness and total profit of the supply chain are no relative with the negotiation strength of the retailer under the partial participation mode, and the greenness and total profit of the supply chain are the same as the condition under the integrated control to achieve the best coordination effect.

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Bundling or Unbundling? Pricing Strategy for Complementary Products in a Green Supply Chain

Cited by 16 publications

References 45 publications

Low carbon joint strategy and coordination for a dyadic supply chain with Nash bargaining fairness

Low carbon joint strategy and coordination for a dyadic supply chain with Nash bargaining fairness

Pricing of Complementary Products in Online Purchasing under Return Policy

Coordination of Store Brand Product’s Green Supply Chain Based on Negotiation

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