Pricing and inventory decisions in a dual-channel supply chain with learning and forgetting

Batarfi, Raaid; Glock, C. H.

doi:10.1016/j.cie.2019.07.034

Cited by 46 publications

(29 citation statements)

References 37 publications

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“…There are three streams of literature related to this work: the joint pricing and ordering problem, decision‐making theory involving risks, and reference point effect. Batarfi, Jaber, and Glock (2019), Vipin and Amit (2017), and Long and Nasiry (2015) provided good reviews on joint pricing and ordering problems, on the loss‐averse behavior and on reference point effects, respectively.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Hu and Ping (2018) considered the uncertainty in the newsvendor's purchase price and analyzed the impact of the total cost of the selling season on the optimal ordering and pricing decisions. Batarfi et al (2019) extended the joint pricing and ordering decisions to a dual‐channel supply chain with learning and forgetting properties and showed that learning facilitates, but forgetting impedes, the supply chain to reduce the retail price to get high demands and sales. Some studies devoted to perishable products.…”

Section: Literature Reviewmentioning

confidence: 99%

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Joint pricing and stocking decisions for a newsvendor problem with loss aversion and reference point effect

Qiu

Sun

2020

Manage Decis Econ

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This study investigates the joint pricing and stocking decisions for a loss‐averse retailer with reference point effect under stochastic demand. By solving an expected utility maximization model developed based on the prospect theory, the optimal pricing and stocking decisions are derived and compared with those of the classical newsvendor. The results show that the optimal decisions significantly depend on the loss aversion coefficient, optimism level, and reference effect strength. Smaller loss aversion coefficient and lower optimism level lead to higher expected utilities. In particular, a loss‐averse retailer with a smaller loss aversion coefficient benefits from a higher reference effect strength and vice versa.

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Section: Literature Reviewmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Joint pricing and stocking decisions for a newsvendor problem with loss aversion and reference point effect

Qiu

Sun

2020

Manage Decis Econ

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“…The authors of [37] explored differentiated product distribution in DCSCs. The authors of [38] modeled pricing and inventory decisions in a DCSC with learning and forgetting effects. The authors of [39] proposed models for pricing and coordination in a DCSC with consideration of green quality and sales effort.…”

Section: Dual-channel Supply Chainmentioning

confidence: 99%

Price Differentiation and Inventory Decisions in a Socially Responsible Dual-Channel Supply Chain with Partial Information Stochastic Demand and Cannibalization

Raza

2020

Sustainability

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Corporate social responsibility (CSR) has received much of the attention in supply chain management, in particular the pricing decisions. Most existing models that enable CSR integration into pricing decisions in a supply chain context assume deterministic demand and focus on a single distribution channel. Despite the fact that dual-channel supply chain (DCSC) has received popularity, most pricing decisions models in DCSC assume fixed and deterministic market share distribution between channels, and no demand leakages (cannibalization). This paper addresses these gaps by proposing a CSR enabled DCSC model pricing in which the demand is considered to be stochastic and market share distribution between channels in DCSC is optimally determined using a differentiation price, and the impact of demand leakages is also taken into consideration. Unlike existing studies, which only enable pricing decisions due to deterministic demand consideration, comprehensive DCSC models are proposed that provide joint decisions framework on CSR investment, pricing, and inventories. We have also considered the extension of the demand scenario when the distribution of demand is unknown. The two most common coordination schemes, the centralized (integrated) and the decentralized coordination is explored for the three demand situations: (i) deterministic demand; (ii) stochastic with full information; and (iii) stochastic with partial information. We are able to find analytical (closed-form) solutions for most demand situations. The centralized coordination performed better compared to the decentralized for all demand scenarios. The models are benchmarked when the demand is stochastic with known and unknown distributions, as well as, the case of the deterministic demand. A detailed numerical analysis is also presented in order to study the impact of using the price differentiation for market segmentation, the demand leakage, and partial knowledge on the stochastic demand on the players’ decisions and revenues in the supply chain.

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“…Sarkar et al [14] built a supply chain of retailers and two manufacturers that produce complementary products and studied pricing decisions in the supply chain. Batarfi et al [15] studied the influence of learning and forgetting on the supplier's production process in a two-level dual-channel supply chain and analyzed the influence of various factors on pricing decisions. RanjanVoigt and Jha [16] also conducted similar research, focusing more on the cooperation between manufacturer and retailer in the supply chain.…”

Section: E Optimal Pricing Decisions Of the Supply Chainmentioning

confidence: 99%

Coordination Strategy of the Supply Chain with Consumer Preferences under the “Presale and Spot-Sale” Mode

Cao

Wu²,

Chen

et al. 2020

Mathematical Problems in Engineering

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In recent years, the market economy has been booming, and the demand of consumers has begun to become diversified. Consumers’ preferences for products, the sensitivity of product prices, and other factors can often affect the market demand and also make enterprises realize the importance of consumer preferences. The decision-making model of the supply chain with consumer preference composed of a retailer and a third-party presale platform is established, and we analyze the implementation of a single presale model, a single spot-sale model, and decision-making models under the “presale and sale” mode. The equilibrium strategy of centralized decision and decentralized decision under the mode of “presale and sale” is compared, and the influence of the proportion of informed consumers and the exogenous variables of cross-period discount on supply chain decision is further analyzed. The coordination strategy of the decentralized decision supply chain under the mode of “presale and sale” is put forward, and the coordinated operation among supply chain members is realized. The results show that compared with other sales models, the “presale and spot-sale” model is more beneficial to the profit of the supply chain.

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Pricing and inventory decisions in a dual-channel supply chain with learning and forgetting

Cited by 46 publications

References 37 publications

Joint pricing and stocking decisions for a newsvendor problem with loss aversion and reference point effect

Joint pricing and stocking decisions for a newsvendor problem with loss aversion and reference point effect

Price Differentiation and Inventory Decisions in a Socially Responsible Dual-Channel Supply Chain with Partial Information Stochastic Demand and Cannibalization

Coordination Strategy of the Supply Chain with Consumer Preferences under the “Presale and Spot-Sale” Mode

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