Consumer returns in a decentralized supply chain

Ruiz‐Benítez, Rocío; Muriel, Ana

doi:10.1016/j.ijpe.2013.05.010

Cited by 57 publications

(22 citation statements)

References 29 publications

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“…There are still some different methods for modeling customer returns. For example, Chen and Bell [21] and Chen and Bell [22] assume customer returns are a function of quantity sold and refund price; Vlachos and Dekker [23], Mostard and Teunter [24], Ruiz-Benitez and Muriel [25], Chen and Zhou [26], Chen and Chen [27], and Choi and Guo [28] model customer returns are a fixed proportion of quantity sold; Yoo et al [29] assume consumer returns are an increasing linear function of the refund price. However, the above research all assumes the customer is risk neutral except Che [15].…”

Section: Literature Reviewmentioning

confidence: 99%

Fresh-Keeping Effort and Channel Performance in a Fresh Product Supply Chain with Loss-Averse Consumers’ Returns

2018

Mathematical Problems in Engineering

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We consider a fresh product supply chain consisting of one fresh product supplier and one e-tailer. Supplier sells fresh products through e-tailer in an online market, and the e-tailer offers a full-refund return policy to loss-averse consumers and exerts a freshkeeping effort to keep the product at the optimum freshness level. By developing an analytical model, we derive the optimal price, quantity, and fresh-keeping effort jointly and verify that it is unique in the centralized setting. Based on the comparison, we demonstrate that the e-tailer's profit is greater with fresh-keeping effort than without it; therefore, the e-tailer has an incentive to engage in fresh-keeping effort. We also show that the return rate is independent of the fresh-keeping effort and consumers' loss aversion. In the decentralized setting, we first characterize the optimal wholesale price by the numerical study and then find that although the buyback contract still works, the revenue-sharing contract fails to achieve channel coordination under our model formulation. Furthermore, we develop a revenue-and cost-sharing contract that can coordinate the supply chain by designing a new contractual mechanism. Our numerical studies offer the Pareto improvement regions under the buyback and revenue-and cost-sharing contracts in which the supplier and e-tailer can earn more expected profits compared with being under wholesale price contract.

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Section: Literature Reviewmentioning

confidence: 99%

Fresh-Keeping Effort and Channel Performance in a Fresh Product Supply Chain with Loss-Averse Consumers’ Returns

2018

Mathematical Problems in Engineering

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“…The authors find that the buyback policy is unable to coordinate the supply chain when the refund amount is endogenous. Ruiz-Benitez and Muriel (2014) analyze a buyback policy in the presence of an exogenously given consumer return program. Yoo (2014) explore the relationship between consumer returns policy and product quality decisions in which the retailer decides the optimal consumer returns policy and the supplier makes a decision on the product quality.…”

Section: Coordination In the Presence Of Consumer Returnsmentioning

confidence: 99%

Pareto Improving Supply Chain Coordination Under a Money-Back Guarantee Service Program

2017

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Abstract. Money-back guarantee (MBG) is a well-known service offered by many retailers. Under the MBG policy, a purchased item by a consumer can be returned for a full refund. In this paper, we explore a supply chain (SC) system comprising of one retailer, which offers the money-back guarantee policy and faces a stochastic demand. With a given supply contract offered by the supplier, the retailer makes decisions on the order quantity and the market coverage of the money-back guarantee service. With reference to real-world practices, we examine three models, namely, (1) the traditional wholesale pricing model without the buyback contract, (2) the model with a buyback contract (between the supplier and the retailer) for unsold items, and (3) a dual-buyback (DB) contract model for both unsold and consumer returned items. We find that using the buyback contract alone for unsold items cannot achieve Pareto improving supply chain coordination, whereas the DB contract can. Numerical findings also indicate that the DB contract can lead to an expansion of the money-back guarantee service program to cover more customers. This paper's findings support the implementation of the DB contract, which is commonly seen in the industry, for efficient supply chain management in the presence of the money-back guarantee service program.

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“…Most of the previous research has focused on Type IV RSSCs (e.g. Bienstock et al, 2011;Ruiz-Benitez and Muriel, 2014), while the consideration of Type I, II and III services is very sparse. More importantly, the typology allows theoretical developments for each cluster of services and their FSSCs and RSSCs and better focused empirical research.…”

Section: Research Implicationsmentioning

confidence: 99%

Towards conceptualizing reverse service supply chains

Ghobadian

Gallear

et al. 2016

Supp Chain Mnagmnt

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Structured Abstract:Purpose -Recognizing the heterogeneity of services, this paper attempts to clarify the characteristics of forward and the corresponding reverse supply chains of different services.Design/methodology/approach -The paper develops a two-dimensional typology matrix, representing four main clusters of services according to the degree of input standardization and the degree of output tangibility. Based on this matrix, we develop a typology and parsimonious conceptual models illustrating the characteristics of forward and the corresponding reverse supply chains of each cluster of services. Research limitations/implications -The findings of this research can help future researchers to analyse, map and model forward and reverse service supply chains, and to identify potential research gaps in the area.Practical implications -The findings of the research can help managers of service firms to gain better visibility of their forward and reverse supply chains, and refine their business models to help extend their reverse/closed-loop activities. Furthermore, the findings can help managers to better optimize their service operations to reduce service gaps and potentially secure new value-adding opportunities.Originality/value -This paper is the first, to our knowledge, to conceptualize the basic structure of the forward and reverse service supply chains while dealing with the high level of heterogeneity of services.

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Consumer returns in a decentralized supply chain

Cited by 57 publications

References 29 publications

Fresh-Keeping Effort and Channel Performance in a Fresh Product Supply Chain with Loss-Averse Consumers’ Returns

Fresh-Keeping Effort and Channel Performance in a Fresh Product Supply Chain with Loss-Averse Consumers’ Returns

Pareto Improving Supply Chain Coordination Under a Money-Back Guarantee Service Program

Towards conceptualizing reverse service supply chains

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