Competition of pricing and service investment between iot-based and traditional manufacturers

Zhou, Zhiping; Liu, Xinbao; Pei, Jun; Pardalos, Pãnos M.; Cheng, Hao Teng

doi:10.3934/jimo.2018006

Cited by 5 publications

(4 citation statements)

References 29 publications

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“…The retail price is a decision. In this section, similar to Zhou et al (2018) [44] and Zhang et al (2020) [43], we consider the case in which the retail price is a decision variable. In this situation, the retailer decides the retail price.…”

Section: Table 2 Sensitivity Analysismentioning

confidence: 99%

“…There are many studies on service competition in supply chain, but most of these studies are concerned with the competition of manufacturers or retailers, while a small number of them have studied service competition between manufacturers and traditional retailers. Zhou et al (2008) [44] develop a multi-period product pricing and service investment model to discuss the optimal decisions of one supplier, one traditional manufacturer and one IoT-based manufacturer in a supplier-dominant supply chain under uncertainty. It shows the advantages of the IoT technology in long-term competition.…”

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confidence: 99%

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Competitive strategies in the presence of consumers' expected service and product returns

Zhang

Chan

Dong

et al. 2022

JIMO

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This paper investigates the optimal strategies and profits of dual channel with product returns in the presence of customers' expected service. Customers' expected service is related to advertising effort and price. We build a two-stage decision making process to analyze the impact of expected services of customers. In addition, we analyze the parameter sensitivity and compare the competitive equilibrium strategies. The results show that the manufacturer will give a lower wholesale price to the retailer in some case. Furthermore, the dual-channel product returns will discourage advertising effort and the service level of the retailer, but it will enable the manufacturer to provide a higher service level. Thus, for managers, the survey of the expected service of customers is very important for the optimal strategies making, and it should not always blindly exploit the retailer's profit for the manufacturer. Finally, when the physical store allows unconditional return of goods, the service level of the online channel will be more considerate.

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Section: Table 2 Sensitivity Analysismentioning

confidence: 99%

mentioning

confidence: 99%

Competitive strategies in the presence of consumers' expected service and product returns

Zhang

Chan

Dong

et al. 2022

JIMO

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“…In general, the consumer’s channel choice and profit in a supply chain can be affected by service input of decision-maker. Scholars have studied the impact of service input on price decision-making and stability of a dual-channel closed-loop supply chain system [17,18,19]. Ma et al [20] developed a dual-channel game model considering the input of retailing service, analyzed the effect of service input adjustment speed on the system complexity and market performance.…”

Section: Introductionmentioning

confidence: 99%

The Stability and Complexity Analysis of a Low-Carbon Supply Chain Considering Fairness Concern Behavior and Sales Service

Chen

Huang

2019

IJERPH

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This paper studies a low-carbon dual-channel supply chain in which a manufacturer sells products through the direct channel and traditional channel, and a retailer sells products through the traditional channel. The manufacturer considers carbon emission reduction and has fairness concern behavior. The retailer provides sales service in the traditional channel and considers fairness concern behavior. The objective of this paper is to analyze the effects of different parameter values on the price stability and utility of the supply chain system emphatically using 2D bifurcation diagram, parameter plot basin, the basins of attraction, chaos attractor and sensitivity to the initial value, etc. The results find that the retailer’s fairness concern behavior shrinks the stability of the supply chain system more than that of the manufacturer’s fairness concern behavior. The system stability region decreases with the increase of carbon emission reduction level and the retailer’s fairness concern. The customers’ preference for the direct channel decreases the stable range of the direct channel, while it enlarges the stable range of the traditional channel. The supply chain system enters into chaos through flip bifurcation with the increase of price adjustment speed. In a stable state, the manufacture improving customer’s preference for the direct channel and the retailer choosing the appropriate fairness concern level can achieve the maximum utility separately. In a chaotic state, the average utilities of the manufacturer and retailer all decline, while that of the retailer declines even more. By selecting appropriate control parameter, the low-carbon dual-channel supply chain system can return to a stable state from chaos again. The research of this paper is of great significance to price decisions of participants and supply chain operation management.

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“…Motivated by the above observations and studies, this paper addresses a channel coordination problem in a VMI supply chain with two quality-competing manufacturers by an option-based contract. Moreover, this research takes the risk preference of manufacturers into consideration, as they might have a profound effect on decisions [19,35,51]. The risk-averse preference of channel members play an important role in their decisions in areas such as production, ordering and investment [5,11,18].…”

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confidence: 99%

Quality competition and coordination in a VMI supply chain with two risk-averse manufacturers

Chen¹,

Xie²,

Huang³

et al. 2021

JIMO

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Quality competition and risk aversion have become more and more common in today's many industries, making it a challenge to supply chain management and coordination. This paper considers a vendor-managed inventory (VMI) supply chain comprising two risk-averse manufacturers who sell their competing products through a common retailer. Market demand shared by each manufacturer is dependent on the quality level of its own product as well as on the competitor's product quality. The Conditional Value-at-Risk (CVaR) criterion is employed to formulate the risk aversion of manufacturers. This study first develops basic models without coordination mechanism and analyzes the effect of the quality sensitivity, competition intensity, risk aversion degree and cost coefficient of quality improvement on equilibrium decisions and supply chain efficiency. Further, a combined contract composed of option and cost-sharing is proposed to investigate the supply chain coordination issue. The results reveal that the combined contract can coordinate the supply chain and achieve a win-win outcome only when the manufacturers are low in risk aversion, and the system-wide profit of the supply chain can be allocated arbitrarily only by the option price. Also, this research examines the effect of the quality sensitivity, competition intensity, risk aversion degree and cost coefficient of quality improvement on the feasible region of option price.

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Competition of pricing and service investment between iot-based and traditional manufacturers

Cited by 5 publications

References 29 publications

Competitive strategies in the presence of consumers' expected service and product returns

Competitive strategies in the presence of consumers' expected service and product returns

The Stability and Complexity Analysis of a Low-Carbon Supply Chain Considering Fairness Concern Behavior and Sales Service

Quality competition and coordination in a VMI supply chain with two risk-averse manufacturers

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