IDEAS home Printed from https://ideas.repec.org/a/eee/apmaco/v250y2015icp580-592.html

Pricing and retail service decisions in fuzzy uncertainty environments

Author

Listed:
  • Zhao, Jing
  • Wang, Lisha

Abstract

This paper studies the pricing and retail service decisions of a product in a supply chain with one manufacturer and two retailers. It is assumed that the supply chain is operated in fuzzy uncertainty environments. The fuzziness is associated with the customer demands, manufacturing costs and service cost coefficients. Three different game structures are considered, i.e., Manufacturer-leader Stackelberg, Retailer-leader Stackelberg, and Vertical Nash. Expected value models are developed to determine the optimal pricing and retail service strategies. The corresponding analytical equilibrium solutions are obtained by solving the models. Finally, numerical examples are presented to illustrate the effectiveness of the theoretical results, and to gain various marketing strategies employed under different situations.

Suggested Citation

  • Zhao, Jing & Wang, Lisha, 2015. "Pricing and retail service decisions in fuzzy uncertainty environments," Applied Mathematics and Computation, Elsevier, vol. 250(C), pages 580-592.
    • Handle: RePEc:eee:apmaco:v:250:y:2015:i:c:p:580-592
    DOI: 10.1016/j.amc.2014.11.005
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0096300314015100
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.amc.2014.11.005?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Amid, A. & Ghodsypour, S.H. & O'Brien, C., 2006. "Fuzzy multiobjective linear model for supplier selection in a supply chain," International Journal of Production Economics, Elsevier, vol. 104(2), pages 394-407, December.
    2. Zhao, Jing & Tang, Wansheng & Zhao, Ruiqing & Wei, Jie, 2012. "Pricing decisions for substitutable products with a common retailer in fuzzy environments," European Journal of Operational Research, Elsevier, vol. 216(2), pages 409-419.
    3. Andy A. Tsay & Narendra Agrawal, 2000. "Channel Dynamics Under Price and Service Competition," Manufacturing & Service Operations Management, INFORMS, vol. 2(4), pages 372-391, August.
    4. Lu, Jye-Chyi & Tsao, Yu-Chung & Charoensiriwath, Chayakrit, 2011. "Competition under manufacturer service and retail price," Economic Modelling, Elsevier, vol. 28(3), pages 1256-1264, May.
    5. Xie, Ying & Petrovic, Dobrila & Burnham, Keith, 2006. "A heuristic procedure for the two-level control of serial supply chains under fuzzy customer demand," International Journal of Production Economics, Elsevier, vol. 102(1), pages 37-50, July.
    6. Kumar, Manoj & Vrat, Prem & Shankar, Ravi, 2006. "A fuzzy programming approach for vendor selection problem in a supply chain," International Journal of Production Economics, Elsevier, vol. 101(2), pages 273-285, June.
    7. Timothy W. McGuire & Richard Staelin, 1983. "An Industry Equilibrium Analysis of Downstream Vertical Integration," Marketing Science, INFORMS, vol. 2(2), pages 161-191.
    8. Yan, Ruiliang & Pei, Zhi, 2009. "Retail services and firm profit in a dual-channel market," Journal of Retailing and Consumer Services, Elsevier, vol. 16(4), pages 306-314.
    9. Perry, Martin K. & Porter, Robert H., 1990. "Can resale price maintenance and franchise fees correct sub-optimal levels of retail service?," International Journal of Industrial Organization, Elsevier, vol. 8(1), pages 115-141.
    10. Phillip J. Lederer & Lode Li, 1997. "Pricing, Production, Scheduling, and Delivery-Time Competition," Operations Research, INFORMS, vol. 45(3), pages 407-420, June.
    11. Lin, Hung-Tso & Chang, Wen-Ling, 2008. "Order selection and pricing methods using flexible quantity and fuzzy approach for buyer evaluation," European Journal of Operational Research, Elsevier, vol. 187(2), pages 415-428, June.
    12. Giannoccaro, Ilaria & Pontrandolfo, Pierpaolo & Scozzi, Barbara, 2003. "A fuzzy echelon approach for inventory management in supply chains," European Journal of Operational Research, Elsevier, vol. 149(1), pages 185-196, August.
    13. Avinash Dixit, 1979. "Quality and Quantity Competition," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 46(4), pages 587-599.
    14. A. Michael Spence, 1975. "Monopoly, Quality, and Regulation," Bell Journal of Economics, The RAND Corporation, vol. 6(2), pages 417-429, Autumn.
    15. Zhao, Jing & Tang, Wansheng & Wei, Jie, 2012. "Pricing decision for substitutable products with retail competition in a fuzzy environment," International Journal of Production Economics, Elsevier, vol. 135(1), pages 144-153.
    16. Teck H. Ho & Yu-Sheng Zheng, 2004. "Setting Customer Expectation in Service Delivery: An Integrated Marketing-Operations Perspective," Management Science, INFORMS, vol. 50(4), pages 479-488, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:plo:pone00:0182453 is not listed on IDEAS
    2. Seyed Jafar Sadjadi & Hashem Asadi & Ramin Sadeghian & Hadi Sahebi, 2018. "Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-24, April.
    3. Raghu Nandan Giri & Shyamal Kumar Mondal & Manoranjan Maiti, 2021. "Analysis of strategies for substitutable and complementary products in a two-levels fuzzy supply chain system," Operational Research, Springer, vol. 21(1), pages 485-524, March.
    4. Mina Rahimi & Ashkan Hafezalkotob & Sobhan Asian & Luis Martínez, 2021. "Environmental Policy Making in Supply Chains under Ambiguity and Competition: A Fuzzy Stackelberg Game Approach," Sustainability, MDPI, vol. 13(4), pages 1-24, February.
    5. Albérico Travassos Rosário & Joana Carmo Dias & Hélder Ferreira, 2023. "Bibliometric Analysis on the Application of Fuzzy Logic into Marketing Strategy," Businesses, MDPI, vol. 3(3), pages 1-22, July.
    6. Tianwen Chen & Ronghu Zhou & Changqing Liu & Xiang Xu, 2023. "Research on Coordination in a Dual-Channel Green Supply Chain under Live Streaming Mode," Sustainability, MDPI, vol. 15(1), pages 1-23, January.
    7. Zihan Qin & Yuanguo Zhu, 2025. "Distribution-free pricing under uncertain circumstance," Fuzzy Optimization and Decision Making, Springer, vol. 24(2), pages 293-316, June.
    8. Debnath, Biswajit & El-Hassani, Rihab & Chattopadhyay, Amit K. & Kumar, T. Krishna & Ghosh, Sadhan K. & Baidya, Rahul, 2022. "Time evolution of a Supply Chain Network: Kinetic modeling," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 607(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Jie Wei & Jing Zhao, 2016. "Pricing decisions for substitutable products with horizontal and vertical competition in fuzzy environments," Annals of Operations Research, Springer, vol. 242(2), pages 505-528, July.
    2. Zhao, Jing & Tang, Wansheng & Zhao, Ruiqing & Wei, Jie, 2012. "Pricing decisions for substitutable products with a common retailer in fuzzy environments," European Journal of Operational Research, Elsevier, vol. 216(2), pages 409-419.
    3. Chen, Jingxian & Liang, Liang & Yang, Feng, 2015. "Cooperative quality investment in outsourcing," International Journal of Production Economics, Elsevier, vol. 162(C), pages 174-191.
    4. Lu, Jye-Chyi & Tsao, Yu-Chung & Charoensiriwath, Chayakrit, 2011. "Competition under manufacturer service and retail price," Economic Modelling, Elsevier, vol. 28(3), pages 1256-1264, May.
    5. Peidro, David & Mula, Josefa & Jiménez, Mariano & del Mar Botella, Ma, 2010. "A fuzzy linear programming based approach for tactical supply chain planning in an uncertainty environment," European Journal of Operational Research, Elsevier, vol. 205(1), pages 65-80, August.
    6. Hu Huang & Hua Ke, 2017. "Pricing decision problem for substitutable products based on uncertainty theory," Journal of Intelligent Manufacturing, Springer, vol. 28(3), pages 503-514, March.
    7. Zhao, Jing & Wei, Jie & Li, Yongjian, 2014. "Pricing decisions for substitutable products in a two-echelon supply chain with firms׳ different channel powers," International Journal of Production Economics, Elsevier, vol. 153(C), pages 243-252.
    8. Syed Asif Raza, 2022. "A bibliometric analysis of pricing models in supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 228-251, April.
    9. Chakraborty, Tulika & Chauhan, Satyaveer S. & Ouhimmou, Mustapha, 2019. "Cost-sharing mechanism for product quality improvement in a supply chain under competition," International Journal of Production Economics, Elsevier, vol. 208(C), pages 566-587.
    10. Liu, Jiaguo & Wang, Junjin, 2019. "Carrier alliance incentive analysis and coordination in a maritime transport chain based on service competition," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 333-355.
    11. Chen, Xu & He, Jinzhe & Wang, Xiaojun, 2024. "Effects of product substitutability and power relationships on performance in triadic supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 183(C).
    12. Hafezi, Maryam & Zhao, Xuan & Zolfagharinia, Hossein, 2023. "Together we stand? Co-opetition for the development of green products," European Journal of Operational Research, Elsevier, vol. 306(3), pages 1417-1438.
    13. Junsong Bian & Kin Keung Lai & Zhongsheng Hua, 2017. "Service outsourcing under different supply chain power structures," Annals of Operations Research, Springer, vol. 248(1), pages 123-142, January.
    14. Seyed Jafar Sadjadi & Hashem Asadi & Ramin Sadeghian & Hadi Sahebi, 2018. "Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-24, April.
    15. Stephen M. Gilbert & Gang Yu & Yusen Xia, 2007. "The strategic effects of a merger upon supplier interactions," Naval Research Logistics (NRL), John Wiley & Sons, vol. 54(2), pages 162-175, March.
    16. Huang, Hu & Ke, Hua & Wang, Lei, 2016. "Equilibrium analysis of pricing competition and cooperation in supply chain with one common manufacturer and duopoly retailers," International Journal of Production Economics, Elsevier, vol. 178(C), pages 12-21.
    17. Jing Zhao & Jie Wei & Xiaochen Sun, 2017. "Coordination of fuzzy closed-loop supply chain with price dependent demand under symmetric and asymmetric information conditions," Annals of Operations Research, Springer, vol. 257(1), pages 469-489, October.
    18. Desheng Wu, 2011. "Joint pricing-servicing decision and channel strategies in the supply chain," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 19(1), pages 99-137, March.
    19. Zhao, Jing & Tang, Wansheng & Wei, Jie, 2012. "Pricing decision for substitutable products with retail competition in a fuzzy environment," International Journal of Production Economics, Elsevier, vol. 135(1), pages 144-153.
    20. Amrouche, Nawel & Yan, Ruiliang, 2013. "Can a weak retailer benefit from manufacturer-dominant retailer alliance?," Journal of Retailing and Consumer Services, Elsevier, vol. 20(1), pages 34-42.

    More about this item

    Keywords

    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:apmaco:v:250:y:2015:i:c:p:580-592. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: https://www.journals.elsevier.com/applied-mathematics-and-computation .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.