IDEAS home Printed from https://ideas.repec.org/a/eee/proeco/v233y2021ics0925527320303601.html
   My bibliography  Save this article

Pricing and replenishment decisions for seasonal and nonseasonal products in a shared supply chain

Author

Listed:
  • Sun, Zhongmiao
  • Xu, Qi
  • Liu, Jinrong

Abstract

This paper examines pricing and replenishment decisions for seasonal and nonseasonal products in a three-echelon shared supply chain. We adopt a time-varying demand function and propose two models (off-season and peak season) for seasonal products, three models for nonseasonal products based on the relative dominance of nonplatform members in the case of the complete information game, and a static Bayesian model in the case of the incomplete information game. For the seasonal products, we find that the chain members should adjust their optimal decisions based on the dominance shifts from the retailer to the factories and the change in the seasonal factor, but for nonseasonal products, the optimal decisions are related only to the channel powers of nonplatform members and not to seasons. In addition, an interesting finding is that the sharing platform's subsidy to the retailer is ineffective under the complete information game, while the subsidy enables the retailer to reduce the retail price and increase the order quantity under the incomplete information game. We also reveal the impacts of some key parameters on the shared chain members.

Suggested Citation

  • Sun, Zhongmiao & Xu, Qi & Liu, Jinrong, 2021. "Pricing and replenishment decisions for seasonal and nonseasonal products in a shared supply chain," International Journal of Production Economics, Elsevier, vol. 233(C).
    • Handle: RePEc:eee:proeco:v:233:y:2021:i:c:s0925527320303601
    DOI: 10.1016/j.ijpe.2020.108011
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0925527320303601
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.ijpe.2020.108011?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Choi, Tsan-Ming & Guo, Shu & Liu, Na & Shi, Xiutian, 2019. "Values of food leftover sharing platforms in the sharing economy," International Journal of Production Economics, Elsevier, vol. 213(C), pages 23-31.
    2. Lo, Wen-Yang & Tsai, Chih-Hung & Li, Rong-Kwei, 2002. "Exact solution of inventory replenishment policy for a linear trend in demand - two-equation model," International Journal of Production Economics, Elsevier, vol. 76(2), pages 111-120, March.
    3. Ma, Hoi-Lam & Wong, Collin Wai-Hung & Leung, Lawrence C. & Chung, Sai-Ho, 2020. "Facility sharing in business-to-business model: A real case study for container terminal operators in Hong Kong port," International Journal of Production Economics, Elsevier, vol. 221(C).
    4. Maihami, Reza & Nakhai Kamalabadi, Isa, 2012. "Joint pricing and inventory control for non-instantaneous deteriorating items with partial backlogging and time and price dependent demand," International Journal of Production Economics, Elsevier, vol. 136(1), pages 116-122.
    5. Lihao Lu & Jianxiong Zhang & Wansheng Tang, 2016. "Optimal dynamic pricing and replenishment policy for perishable items with inventory-level-dependent demand," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(6), pages 1480-1494, April.
    6. Xia, Yu, 2011. "Competitive strategies and market segmentation for suppliers with substitutable products," European Journal of Operational Research, Elsevier, vol. 210(2), pages 194-203, April.
    7. Li, Yongjian & Bai, Xuanming & Xue, Kelei, 2020. "Business modes in the sharing economy: How does the OEM cooperate with third-party sharing platforms?," International Journal of Production Economics, Elsevier, vol. 221(C).
    8. Jorgensen, Steffen & Kort, Peter M., 2002. "Optimal pricing and inventory policies: Centralized and decentralized decision making," European Journal of Operational Research, Elsevier, vol. 138(3), pages 578-600, May.
    9. Wang, Min & Zhao, Lindu & Herty, Michael, 2019. "Joint replenishment and carbon trading in fresh food supply chains," European Journal of Operational Research, Elsevier, vol. 277(2), pages 561-573.
    10. Shi, Yan & Zhang, Zhiyong & Chen, Sheng-Chih & Cárdenas-Barrón, Leopoldo Eduardo & Skouri, Konstantina, 2020. "Optimal replenishment decisions for perishable products under cash, advance, and credit payments considering carbon tax regulations," International Journal of Production Economics, Elsevier, vol. 223(C).
    11. Choi, Tsan-Ming & Guo, Shu & Liu, Na & Shi, Xiutian, 2020. "Optimal pricing in on-demand-service-platform-operations with hired agents and risk-sensitive customers in the blockchain era," European Journal of Operational Research, Elsevier, vol. 284(3), pages 1031-1042.
    12. Taleizadeh, Ata Allah & Sadeghi, Razieh, 2019. "Pricing strategies in the competitive reverse supply chains with traditional and e-channels: A game theoretic approach," International Journal of Production Economics, Elsevier, vol. 215(C), pages 48-60.
    13. Jiong Sun & Hendrarto Supangkat & Siva Balasubramanian, 2016. "Peer-to-Peer Sharing of Private Goods: Sellers’ Response and Consumers’ Benefits," Journal of the Association for Consumer Research, University of Chicago Press, vol. 1(2), pages 262-276.
    14. Eunkyu Lee & Richard Staelin, 1997. "Vertical Strategic Interaction: Implications for Channel Pricing Strategy," Marketing Science, INFORMS, vol. 16(3), pages 185-207.
    15. Pan, Qin-hua & He, Xiuli & Skouri, Konstantina & Chen, Sheng-Chih & Teng, Jinn-Tsair, 2018. "An inventory replenishment system with two inventory-based substitutable products," International Journal of Production Economics, Elsevier, vol. 204(C), pages 135-147.
    16. Liu, Wei & Song, Shiji & Wu, Cheng, 2013. "Impact of loss aversion on the newsvendor game with product substitution," International Journal of Production Economics, Elsevier, vol. 141(1), pages 352-359.
    17. Minakshi Trivedi, 1998. "Distribution Channels: An Extension of Exclusive Retailership," Management Science, INFORMS, vol. 44(7), pages 896-909, July.
    18. Edirisinghe, N.C.P. & Bichescu, B. & Shi, X., 2011. "Equilibrium analysis of supply chain structures under power imbalance," European Journal of Operational Research, Elsevier, vol. 214(3), pages 568-578, November.
    19. Karakul, M. & Chan, L.M.A., 2010. "Joint pricing and procurement of substitutable products with random demands - A technical note," European Journal of Operational Research, Elsevier, vol. 201(1), pages 324-328, February.
    20. Sun, Luoyi & Teunter, Ruud H. & Babai, M. Zied & Hua, Guowei, 2019. "Optimal pricing for ride-sourcing platforms," European Journal of Operational Research, Elsevier, vol. 278(3), pages 783-795.
    21. Kostas Bimpikis & Ozan Candogan & Daniela Saban, 2019. "Spatial Pricing in Ride-Sharing Networks," Operations Research, INFORMS, vol. 67(3), pages 744-769, May.
    22. Kuang, Yunjuan & Ng, Chi To, 2018. "Pricing substitutable products under consumer regrets," International Journal of Production Economics, Elsevier, vol. 203(C), pages 286-300.
    23. Liu, Weihua & Yan, Xiaoyu & Wei, Wanying & Xie, Dong, 2019. "Pricing decisions for service platform with provider’s threshold participating quantity, value-added service and matching ability," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 410-432.
    24. Karakul, M. & Chan, L.M.A., 2008. "Analytical and managerial implications of integrating product substitutability in the joint pricing and procurement problem," European Journal of Operational Research, Elsevier, vol. 190(1), pages 179-204, October.
    25. Kung, Ling-Chieh & Zhong, Guan-Yu, 2017. "The optimal pricing strategy for two-sided platform delivery in the sharing economy," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 101(C), pages 1-12.
    26. 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.
    Full references (including those not matched with items on IDEAS)

    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. Li, Wei & Chen, Jing, 2018. "Pricing and quality competition in a brand-differentiated supply chain," International Journal of Production Economics, Elsevier, vol. 202(C), pages 97-108.
    2. Qiaoyu Peng & Chuanxu Wang, 2022. "Ship space sharing strategies with different rental modes: How does NVOCCs cooperate with booking platform?," Operational Research, Springer, vol. 22(3), pages 3003-3035, July.
    3. Chen, Mingyang & Zhao, Daozhi & Gong, Yeming & Rekik, Yacine, 2022. "An on-demand service platform with self-scheduling capacity: Uniform versus multiplier-based pricing," International Journal of Production Economics, Elsevier, vol. 243(C).
    4. Wei, Wanying & Liu, Weihua & Tang, Ou & Dong, Chuanwen & Liang, Yanjie, 2023. "CSR investment for a two-sided platform: Network externality and risk aversion," European Journal of Operational Research, Elsevier, vol. 307(2), pages 694-712.
    5. He, Shan & Dai, Ying & Ma, Zu-Jun, 2023. "To offer or not to offer? The optimal value-insured strategy for crowdsourced delivery platforms," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 173(C).
    6. Shin, Hojung & Park, Soohoon & Lee, Euncheol & Benton, W.C., 2015. "A classification of the literature on the planning of substitutable products," European Journal of Operational Research, Elsevier, vol. 246(3), pages 686-699.
    7. Matsui, Kenji, 2019. "A supply chain member should set its margin later if another member's cost is highly uncertain," European Journal of Operational Research, Elsevier, vol. 275(1), pages 127-138.
    8. Zhang, Yumeng & Hezarkhani, Behzad, 2021. "Competition in dual-channel supply chains: The manufacturers' channel selection," European Journal of Operational Research, Elsevier, vol. 291(1), pages 244-262.
    9. 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.
    10. Wei, Jie & Zhao, Jing & Li, Yongjian, 2013. "Pricing decisions for complementary products with firms’ different market powers," European Journal of Operational Research, Elsevier, vol. 224(3), pages 507-519.
    11. Wen, Xin & Siqin, Tana, 2020. "How do product quality uncertainties affect the sharing economy platforms with risk considerations? A mean-variance analysis," International Journal of Production Economics, Elsevier, vol. 224(C).
    12. Rajendran, Suchithra & Srinivas, Sharan, 2020. "Air taxi service for urban mobility: A critical review of recent developments, future challenges, and opportunities," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    13. Chung, Hwan & Lee, Eunkyu, 2017. "Asymmetric relationships with symmetric suppliers: Strategic choice of supply chain price leadership in a competitive market," European Journal of Operational Research, Elsevier, vol. 259(2), pages 564-575.
    14. Ata Allah Taleizadeh & Masoumeh Sadat Babaei & Shib Sankar Sana & Biswajit Sarkar, 2019. "Pricing Decision within an Inventory Model for Complementary and Substitutable Products," Mathematics, MDPI, vol. 7(7), pages 1-22, June.
    15. He, Peng & He, Yong & Tang, Xiaoying & Ma, Shigui & Xu, Henry, 2022. "Channel encroachment and logistics integration strategies in an e-commerce platform service supply chain," International Journal of Production Economics, Elsevier, vol. 244(C).
    16. Choi, Tsan-Ming, 2019. "Blockchain-technology-supported platforms for diamond authentication and certification in luxury supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 128(C), pages 17-29.
    17. Meijian Yang & Enjun Xia, 2021. "A Systematic Literature Review on Pricing Strategies in the Sharing Economy," Sustainability, MDPI, vol. 13(17), pages 1-28, August.
    18. Siqin, Tana & Choi, Tsan-Ming & Chung, Sai-Ho, 2022. "Optimal E-tailing channel structure and service contracting in the platform era," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 160(C).
    19. Xiao, Tiaojun & Choi, Tsan-Ming & Cheng, T.C.E., 2014. "Product variety and channel structure strategy for a retailer-Stackelberg supply chain," European Journal of Operational Research, Elsevier, vol. 233(1), pages 114-124.
    20. Adhikari, Arnab & Sharma, Megha & Basu, Sumanta & Jha, Ashish Kumar, 2022. "Uniform or spatially differentiated? Pricing Strategies for Information Goods under simultaneous and sequential decision-making in multi-market context," Journal of Retailing and Consumer Services, Elsevier, vol. 64(C).

    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:proeco:v:233:y:2021:i:c:s0925527320303601. 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: http://www.elsevier.com/locate/ijpe .

    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.