Browse > Article

Coordination Under Price Protection, Mid/End Life Returns, and Quantity Discount for a Three-Level Supply Chain  

Lee, Chang-Hwan (아주대학교 경영학부)
Publication Information
Journal of the Korean Operations Research and Management Science Society / v.30, no.3, 2005 , pp. 17-39 More about this Journal
Abstract
The coordination of a three-level supply chain consisting of a supplier, a retailer, and a discount outlet (DCO) is studied here. We assume that the product is sold in two consecutive periods a Normal Sales Period (NSP) and a subsequent Clearance Salvage Period (CSP). A benchmark case is studied Initially in which the supply chain is coordinated by a s1n91e agent. Thus, the supplier the retailer, and the discount outlet design a common system that allows centralized decision making about stocking quantities, markdown time schedules, and policies on disposing of leftovers to deliver the greatest possible expected supply chain profit. Next, we consider a decentralized supply chain. Here, decisions are made without coordination. The objective is to maximize an individual party's expected profits. The focus of the study is on the following questions: what factors make the coordination an effective approach for the supply chain? How do we coordinate the supply chain so as to maximize the supply chain Joint expected profit? These and other related study issues are explored in this paper.
Keywords
Supply Chain Coordination; Newsvendor Inventory Control Model;
Citations & Related Records
연도 인용수 순위
  • Reference
1 Lau, H.L. and H.S. Lau, 'The Newsboy Problem with Price-Dependent Demand Distribution,' lIE Transactions, (1988), pp. 168-175
2 Lau, H.L., H.S. Lau, and K.D. Willett, 'Demand Uncertainty and Returns Policies For a Seasonal Product : An Alternative Model,' International Journal of Production Economics, Vol.66(2000), pp.1-12   DOI   ScienceOn
3 Lee, H.L. and MJ. Rosenblatt, 'A Generalized Quantity Discount Pricing Model To Increase Supplier's Profit,' Management Science, Vol.32(1986), pp.1177-1184   DOI   ScienceOn
4 Padmanabhan, V. and I. Png, 'Manufacturer's Returns Policies and Retail Competition,' Marketing Science, Vol.16(1997), pp.81-94   DOI   ScienceOn
5 Parlar, M. and Z.K. Weng, 'Designing a Firm's Coordinated Manufacturing and Supply Decisions with Short Product Life Cycles,' Management Science, Vol.43(1997), pp.1329-1344   DOI   ScienceOn
6 Porteus, E.L, 'Stochastic Inventory Theory,' in D. Heyman, and M. Sobel (Eds.), Handbooks in Operations Research and Management Science, Vol.2, Stochastic Models, North-Holland, Amsterdam, Netherlands, 1990
7 Schwartz, B., 'Reverse Logistics Strengthens Supply Chain,' Transportation and Distribution, May(2002)
8 Taylor, TA, 'Channel Coordination Under Price Protection, Midlife Returns, and End of Life Returns in Dynamic Markets,' Management Science, Vol.47(2001), pp.1220-1234   DOI   ScienceOn
9 Taylor, T.A., 'Supply Chain Coordination Under Channel Rebates with Sales Effort Effects,' Management Science, Vol.48(2002), pp.992-1007   DOI   ScienceOn
10 Tsay, A.A., 'The Quantity Flexibility Contract and Supplier Customer Incentives,' Management Science, Vol.45(1999), pp.1339-1358   DOI   ScienceOn
11 Lee, H.L. and M.J. Rosenblatt, V. Padmanabhan, T.A. Taylar, and S. Whang, 'Price Protection In The Personal Computer Industry,' Management Science, Vol.46(2000), pp.467-482   DOI   ScienceOn
12 Marvel, H.P. and J. Peck, 'Demand Uncertainty and Return Policies,' International Economic Review, Vol.36(1995), pp. 691-714   DOI   ScienceOn
13 Donohue, K.L., 'Efficient Supply Contracts for Fashion Goods with Forecast Updating and Two Production Modes,' Management Science, Vol.46(2000), pp.1397 -1411   DOI   ScienceOn
14 Jeuland, A.P. and S.M. Shugan, 'Managing Channel Profit,' Marketing Science, Vol.3 (1983), pp.239-271
15 Kandel, E., 'The Right to Return,' The Journal of Law and Economics, Vol.39 (1996), pp.329-356   DOI   ScienceOn
16 Leland, HE., 'Theory of the Firm Facing Uncertain Demand,' The American Economic Review, Vol.62(1972), pp.278-291
17 Lau, HS. and H.S. Lau, 'Manufacturer's Pricing Strategy and Return Policy for a Single-period Commodity,' European Journal of Operational Research, Vol.116(1999), pp.291- 304   DOI   ScienceOn
18 Lariviere, M.A., 'Supply Chain Contracting and Coordination with Stochastic Demand,' in S. Tayur, R. Ganeshan, and M. Magazine (Eds.), Quantitative Models for Supply Chain Management, Kluwer's Academic Publisher, Norwell, MA., 1999
19 Weng, Z.K., 'Channel Coordination and Quantity Discount,' Management Science, VoI.41(1995), pp.1509-1522   DOI   ScienceOn
20 Khouja, M., 'The Newsboy Problem Under Progressive Multiple Discount,' Eur. J. Oper. Res., Vol.84(1995), pp.458-466   DOI   ScienceOn
21 Emmons, H. and S.M. Gilbert, 'The Role of Return Policies in Pricing and Inventory Decision,' Management Science, Vol.44 (1998), pp.276-283   DOI   ScienceOn
22 Bartmann, D. and M. Beckmann, Lecture Notes in Economics and Mathematical Systems, Inventory Control: Models and Method, Berlin Heidelberg, Germany, Springer-Verlag, 1992
23 Gerchak, Y, R. Vickson, and M. Parlar 'Periodic Review Production Models with Variable Yield and Uncertain Demand,' lIE Transactions, Vol.20(1988), pp.144-150
24 Monahan, JP., 'A Quantity Discount Pricing Model to Increase Vendor Profit,' Management Science, Vol.30(1984), pp.720-726   DOI   ScienceOn
25 Tsay, A.A., 'Managing Retail Channel Overstock : Markdown Money and Return Policy.' Journal of Retailing, Vol.77(2001), pp.457-492   DOI   ScienceOn
26 Lee, C.H., 'Coordinated Stocking, Clearance Sale, and Return Policies for a Supply Chain,' European Journal of Operational Research, Vol.131(2001), pp.33-55
27 Jones, T., 'Reverse Logistics, Bring the Product Back: Taking It into the Future,' in J. Gattorna (Eds.), Strategic Supply Chain Alignment, Gower Publishing Limited, Hampshire, England, 1998
28 Pasternack, B.A., 'Optimal Pricing and Return Policies for Perishable Commodities,' Marketing Science, Vol.4(1985), pp, 166-176   DOI   ScienceOn
29 Tsay, A.A., 'Risk Sensitivity In distribution Channel Partnership : Implications For Manufacturer Return Policies,' Working Paper, Leavy School of Business, Santa Clara University, CA. 2002
30 Webster, S. and K. Weng, 'A Perishable Item Return Policy, Manufacturing and Service,' Operations Management, (2000), pp.100-106
31 Weng, Z.K., 'Pricing and Ordering Strategies in Manufacturing and Distribution Alliances,' IIE Transactions, Vol.29(1997), pp.681-692
32 Kohli, R. and H. Park, 'A Cooperative Game Theory Model of Quantity Discount,' Management Science, Vol.35(1989), pp.693-700   DOI   ScienceOn
33 Petruzzi, N.C. and M. Dada, 'Pricing and The Newsvendor Problem : A Review with Extension,' Operations Research, Vol.47 (1999), pp.183-194   DOI   ScienceOn
34 Wang, Y. and Y. Gerchak, 'Supply Chain Coordination When Demand Is Shelf-Space Dependent,' Manufacturing and Service Operations Management, Vol.3(2001), pp. 82-87   DOI
35 Corbett, C. and X. de Groote, 'A Supplier's Optimal Quantity Discount Policy Under Asymmetric Information,' Management Science, Vol.46, No.3(2000), pp.444-450   DOI   ScienceOn