Decision on risk-averse dual-channel supply chain under demand disruption

Yan, Bo; Jin, Zijie; Liu, Yanping; Yang, Jian‐Bo

doi:10.1016/j.cnsns.2017.07.003

Cited by 48 publications

(28 citation statements)

References 28 publications

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“…Manufacturers have different risk aversion levels because of various factors; the larger λ i is, the more conservative the manufacturer will be. The utility of risk-averse manufacturers can be evaluated by the MV method [35,[48][49][50], that is,…”

Section: Assumptionmentioning

confidence: 99%

Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand

Sun

Yang

Zhong

2020

IJERPH

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With the increasingly serious problem of environmental pollution, reducing carbon emissions has become an urgent task for all countries. The cap-and-trade (C&T) policy has gained international recognition and has been adopted by several countries. In this paper, considering the uncertainty of market demand, we discuss the carbon emission reduction and price policies of two risk-averse competitive manufacturers under the C&T policy. The two manufacturers have two competitive behaviors: simultaneous decision making and sequential decision making. Two models were constructed for these behaviors. The optimal decisions, carbon emission reduction rate, and price were obtained from these two models. Furthermore, in this paper the effects of some key parameters on the optimal decision are discussed, and some managerial insights are obtained. The results show that the lower the manufacturers’ risk aversion level is, the higher their carbon emission reduction rate and utilities. As the carbon quota increases, the manufacturers’ optimal carbon reduction rate and utilities increase. Considering consumers’ environmental awareness, it is more beneficial for the government to reduce the carbon quota and motivate manufacturers’ internal enthusiasm for emission reduction. The government can, through macro control of the market, make carbon trading prices increase appropriately and encourage manufacturers to reduce carbon emissions.

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Section: Assumptionmentioning

confidence: 99%

Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand

Sun

Yang

Zhong

2020

IJERPH

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“…First is by introducing a bifurcation of manufacturer-led dualchannel configurations into four different channel configurations. Studies carried out by Chen et al, (2017); ; Pu et al, (2017); Xiao and Shi, (2016); Yan et al, (2018); Zhao et al, (2016) and Zhou et al, (2018b) consider centralized and decentralized manufacturer-led, retailer-led and third party-led channel configurations. A part of these configurations in actual market condition the manufacturer-led dual-channel can be diverged into various four channel configurations as explained in detail in Table 1.…”

Section: Research Agendamentioning

confidence: 99%

Price and profit decisions in manufacturer-led dual-channel supply chain configurations

Pathak¹,

Kant²,

Shankar³

2020

10.5267/j.ijiec

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In the world of digitization, e-commerce practices has become more popular and attracts manufacturers to combine their traditional retail channel with an e-channel. To add some salient features in the existing study, this study develops an optimal pricing and profit decision model for manufacturer-led dual-channel supply chain configurations; namely Vertically Integrated Dual-Supply Chain (VID-SC), Decentralized Dual-channel Supply Chain (DD-SC), Partially Integrate Dual-Supply Chain (PID-SC) and Horizontally Integrated Dual-Supply Chain (HID-SC). The aim of this study is to examine the effect of selected decision parameters namely cooperative advertisement, delivery lead time and free-riding on price and profit of manufacturer-led dual supply chain configurations. A linear programming for profit maximization is developed and backward induction method is used to find the optimum values of price and profit. A numerical analysis is performed to evaluate the effect of selected decision parameters on price and profit. To check the robustness of the outcomes an interaction plot is made to indicate the relationship between the selected decision parameters on optimum price. The best fit values of these decision parameters lead to the optimum price and the profit. The study helps to find the best fit value of the selected decision parameters for their specified dualchannel configuration. As a result, the model contributes as a guideline moreover it is proficient to guide manufacturers and channel members as a decision making practices without actual implementation of any strategy or policy.

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“…Zhang et al [26] study the coordinations in a dualchannel supply chain when demand disruption occurs. Yan et al [27] conducted a dual-channel supply chains using centralized and decentralized decision-making models to making comparison analysis of the decisions before and after demand disruption. They find that the optimal decision is only influenced by demand disruption in the centralized decision-making model.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing Decisions of a Dual-Channel Supply Chain considering Supply Disruption Risk

Zhou

Jin

Wei

et al. 2018

Discrete Dynamics in Nature and Society

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Supply disruption may cause strong complaints of customers, which is a cost loss for the firms in the supply chain. Obviously, if realizing that there is the disruption risk, the members in a supply chain will adjust their decisions. For analyzing the influence, we consider a popular supply chain mode with dual channels, where one manufacturer has its direct sales channel and one traditional retailer channel. The manufacturer may suffer a supply disruption so that all ordered products by the retailer or the direct retail channel will be lost, and the members in supply chain will bear the corresponding disruption penalty from the customers. By considering four structures with different market power relations, the closed-form optimal price decisions of the four models are given. We found that the disruption factor improves the sales prices for any member structure as compared to the supply chain without the disruption. And the direct retail prices in the different modes are the same as each other, but the price of the traditional channel is influenced by the market share. And the sorts of the sales prices under different structures are given. We also conduct some extensive numerical analysis and compare the results under different structures. We observe that the expected optimal profits of considering the external penalty are smaller than those of no external penalty, and we give a sort of the optimal expected profits. And we also provide the effects of some parameters on the optimal decisions and the optimal expected profits.

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Decision on risk-averse dual-channel supply chain under demand disruption

Cited by 48 publications

References 28 publications

Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand

Optimal Decisions for Two Risk-Averse Competitive Manufacturers under the Cap-and-Trade Policy and Uncertain Demand

Price and profit decisions in manufacturer-led dual-channel supply chain configurations

Pricing Decisions of a Dual-Channel Supply Chain considering Supply Disruption Risk

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