Service outsourcing under different supply chain power structures

Bian, Junsong; Lai, Kin Keung; Hua, Zhongsheng

doi:10.1007/s10479-016-2228-y

Cited by 34 publications

(24 citation statements)

References 24 publications

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“…Bian et al. () applied game theory to investigate the impact of service outsourcing under three common supply chain power structures.…”

Section: Literature Reviewmentioning

confidence: 99%

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Manufacturer warranty service outsourcing strategies in a dual‐channel supply chain

Zhang

et al. 2020

Int Trans Operational Res

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Warranty management for durable products has received increasing attention in recent years. In addition to conventionally keeping warranty in‐house, more manufacturers choose to outsource warranty service to agents. This paper explores outsourcing strategies for manufacturer warranty services in a dual‐channel supply chain by which the demand‐enhancing service can be undertaken by different supply chain parties. We show the results of three alternative outsourcing strategies for manufacturers whereby (a) the retailer undertakes the service, (b) a third party undertakes the service, and (c) both the retailer and a third party undertake the service simultaneously. According to Stackelberg game theory, we build a two‐echelon supply chain model and discuss the corresponding expressions for supply chain members' equilibrium decisions. Additionally, we compare the profits of each supply chain member and derive interesting managerial insights. When the base market size is relatively large, Scenario R helps the manufacturer and the retailer reach a “win‐win” situation.

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“…Bian et al. () applied game theory to investigate the impact of service outsourcing under three common supply chain power structures.…”

Section: Literature Reviewmentioning

confidence: 99%

“…In Scenario R, the manufacturer outsources the warranty service to the retailer for all products sold. Without loss of generality, we assume that the production cost of the manufacturer is normalized to zero (Bian et al., ).…”

Section: Model Descriptionmentioning

confidence: 99%

Manufacturer warranty service outsourcing strategies in a dual‐channel supply chain

Zhang

et al. 2020

Int Trans Operational Res

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“…The horizontal competition from either the manufacturer or the retailer layers also deserves to be investigated as well. Moreover, in light of the proposed framework has been employed to unlock impact of uncertain demand [12], service outsourcing [20], quality decision in supply chain encroachment [35], it is reasonable to further extend the present research considering carbon emission sensitive demand.…”

Section: Discussionmentioning

confidence: 95%

“…Xue et al [19] unlock the effect of different power schemes on the supply chain partners' performance and consumer surplus, based upon a game-theory based framework. Bian et al [20] study the impact of service outsourcing under three supply chain power structures, and find that a lower retail price or a higher service level could occur in the decentralized channel with service outsourcing compared to those in the integrated channel, but they never occur simultaneously. Chen et al [21] study the impact of the supply chain power structure on pricing decisions and the performance, within a retail service supply chain with an online-to-offline (O2O) mixed dual-channel.…”

Section: Related Workmentioning

confidence: 99%

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Impacts of Power Structure on Sustainable Supply Chain Management

Deng

et al. 2017

Sustainability

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The present paper examines the manufacturer's operational decisions, e.g., wholesale price and product sustainability level, the retailer's operational decision, e.g., retail margin, and supply chain efficiency under three supply chain power structures: manufacturer Stackelberg, Nash and retailer Stackelberg. As a benchmark, we first obtain the equlibrium price and product sustainability level in a vertically integrated supply chain. Our analysis provides some interesting findings in a decentralized supply chain: (i) a dominant manufacturer (retailer) always benefits from its power; (ii) the entire supply chain earns the most profit from the Nash game, and the least from the retailer Stackelberg game, respectively; (iii) as the power shifts from the manufacturer to the retailer, product sustainability and retail price increase; (iv) dominant manufacturer does not necessarily imply low wholesale price that would benefit the retailer. Managerial insights are provided for the manufacturer and the retailer, respectively.

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Recent Advances of Service Supply Chain Management: Roles of Logistics

Choi

2022

Global Logistics and Supply Chain Strategies for the 2020s

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Service outsourcing under different supply chain power structures

Cited by 34 publications

References 24 publications

Manufacturer warranty service outsourcing strategies in a dual‐channel supply chain

Manufacturer warranty service outsourcing strategies in a dual‐channel supply chain

Impacts of Power Structure on Sustainable Supply Chain Management

Recent Advances of Service Supply Chain Management: Roles of Logistics

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