Equilibrium Returns Policies in the Presence of Supplier Competition

Bandyopadhyay, Subhajyoti; Paul, Anand

doi:10.1287/mksc.1100.0563

Cited by 41 publications

(29 citation statements)

References 41 publications

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“…The model is based on a dyad channel of manufacturer and retailer, which can be extended to include competition in either upstream or downstream or both (Bandyopadhyay and Paul 2010). Adding competition may improve our understanding of the strategic effect of service failure prevention and recovery.…”

Section: Discussionmentioning

confidence: 99%

Service Failure Recovery and Prevention: Managing Stockouts in Distribution Channels

Dong

Cui

et al. 2015

Marketing Science

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I n managing service failures such as stockouts, most research has emphasized preventive mechanisms, whereas stockout recovery mechanisms have been largely ignored. We propose and examine a failure-recovery mechanism (i.e., contractual stockout recovery) in the presence of demand uncertainty and compare it with failureprevention mechanisms in a dyadic distribution channel.We find that stockout recovery mechanisms can improve channel profitability under certain conditions. More importantly, we find that stockout recovery may outperform stockout prevention mechanisms such as return policy and vendor managed inventory in improving manufacturer and channel profitability. This is because stockout recovery reduces channel-wide stockout risks and allows benefits from the reduced risks to be shared between the manufacturer and the retailer, helping alleviate double marginalization. Although return policy also reduces stockout risks, it does so by increasing inventory risks in the channel without reducing channel exposure to demand uncertainty. Thus, our research suggests that stockout recovery can be an effective alternative in managing stockouts to those common methods of stockout prevention mechanisms.

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Section: Discussionmentioning

confidence: 99%

Service Failure Recovery and Prevention: Managing Stockouts in Distribution Channels

Dong

Cui

et al. 2015

Marketing Science

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“…Return strategy is an important strategy for the manufacturer and retailer to maintain market competitiveness in general and in customer service in particular [3]. Manufacturers' return strategy for retailers is limited to excess inventory (e.g., [22][23][24][25][26][27][28][29]). As seen from the above literature, the manufacturer's return strategy is a guarantee for the retailer, which faces uncertain demand, thereby eliminating or reducing the retailer's sales risk and encouraging the retailer to maintain more inventories.…”

Section: Literature Reviewmentioning

confidence: 99%

Money-Back Guarantee, Dual Money-Back Guarantee, and O2O Strategy in a Manufacturer’s Dual-Channel Supply Chain

Liu

Ren

Yang

et al. 2020

Mathematical Problems in Engineering

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Return services are increasingly valued by manufacturers, retailers, and customers. In many countries, an offer of money-back guarantee (MBG) is legally binding. In this paper, we discuss how a retailer and manufacturer with a direct channel should choose single or dual MBG and pricing strategies. We identify the conditions under which a retailer or manufacturer should choose a return strategy and show that the handling return loss and the customer return cost in each channel are critical factors that should be considered by the retailer and manufacturer when choosing a return strategy. In addition, the retailer should cooperate with the manufacturer to establish an offline-to-online (O2O) omnichannel to fully benefit from the convenience and advantages of the retail channel. We find that the adoption of the O2O strategy by the retailer in its retail channel always generates profits, while the manufacturer may implement the O2O strategy in its direct channel when the profit from the Internet service is higher than a threshold. Additionally, the impact of various strategies on pricing, market share, and profits is discussed.

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“…In Internet environment, Li et al [20] studied the pricing of green dual-channel supply chain. In multiple manufacturer environments, Bandyopadhyay and Anand [21] discussed the optimal decision under competition. Atasu et al [22] analyzed the factors affecting remanufacturing to obtain the profits in monopolistic and competitive environments.…”

Section: Literature Reviewmentioning

confidence: 99%

Research on Two-Way Logistics Operation with Uncertain Recycling Quality in Government Multi-Policy Environment

Tan

Guo

2019

Sustainability

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With the emphasis on environmental protection issues, countries have introduced a number of circular economy-related policies aimed at guiding enterprises to green development and green innovation. At the same time, they are encouraged to strengthen the combination of forward logistics and reverse logistics, providing an effective way to improve resource shortages and reduce environmental pollution. However, the quality of recycled products in reverse logistics is often uncertain, which not only increases the risk of production decisions of remanufacturers, but also affects the sales of new products in the forward logistics to a certain extent. Based on the uncertainty of recycling quality of waste products and the controllability of remanufacturing technology level, this paper studies the impact of various regulatory environments on the operation of a two-way logistics system. We solve the decision model of the system through game theory. The results show that the government’s policy can improve product recycling quality and remanufacturing technology. However, recycling rewards and punishments, remanufacturing technology subsidies, and recycling payment factors need to be within a certain range to ensure the effectiveness of the trading market. When the recycling regulation has been implemented, it is beneficial for manufacturers to choose to improve their remanufacturing technology level. This means that the combined effect of multiple policies is more conducive to the operation of a two-way logistics system.

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Equilibrium Returns Policies in the Presence of Supplier Competition

Cited by 41 publications

References 41 publications

Service Failure Recovery and Prevention: Managing Stockouts in Distribution Channels

Service Failure Recovery and Prevention: Managing Stockouts in Distribution Channels

Money-Back Guarantee, Dual Money-Back Guarantee, and O2O Strategy in a Manufacturer’s Dual-Channel Supply Chain

Research on Two-Way Logistics Operation with Uncertain Recycling Quality in Government Multi-Policy Environment

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