IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i22p9348-d442960.html
   My bibliography  Save this article

Research on the Dynamic Pricing and Service Decisions in the Reverse Supply Chain considering Consumers’ Service Sensitivity

Author

Listed:
  • Jixiang Zhang

    (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China)

  • Chen Zhu

    (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China)

Abstract

In this work, considering consumers’ service sensitivity for the third-party collector in the reverse supply chain, a game model (including a manufacturer and a third-party collector) with dual-channel recycling structure was established. Based on the bounded rationality, we used dynamics theory to analyze the dynamic service and pricing decisions of the manufacturer and the third-party collector in the process of collecting waste products. The results showed that adjustment speeds of pricing and service decisions have great effect on the stability of recycling market, and the recycling market is most sensitive to the change of third-party collectors’ service decision. When the recycling market is in chaos, it has a strong initial value sensitivity. In addition, we found that increase of consumers’ service sensitivity and service cost parameter had negative effect on stability of the recycling market; there is a reverse relationship between price adjustment parameters and the service adjustment parameter. With the increase of service adjustment parameter, the bifurcation point of the system will appear more quickly. Finally, chaotic market can be controlled by the feedback control method.

Suggested Citation

  • Jixiang Zhang & Chen Zhu, 2020. "Research on the Dynamic Pricing and Service Decisions in the Reverse Supply Chain considering Consumers’ Service Sensitivity," Sustainability, MDPI, vol. 12(22), pages 1-21, November.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:22:p:9348-:d:442960
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/22/9348/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/22/9348/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Xi, Xuan & Zhang, Jixiang, 2020. "Complexity analysis of a decision-making game concerning governments and heterogeneous agricultural enterprises with bounded rationality," Chaos, Solitons & Fractals, Elsevier, vol. 140(C).
    2. Jing Chen & Bintong Chen, 2016. "Competing with customer returns policies," International Journal of Production Research, Taylor & Francis Journals, vol. 54(7), pages 2093-2107, April.
    3. He, Qidong & Wang, Nengmin & Yang, Zhen & He, Zhengwen & Jiang, Bin, 2019. "Competitive collection under channel inconvenience in closed-loop supply chain," European Journal of Operational Research, Elsevier, vol. 275(1), pages 155-166.
    4. Ganesh Iyer, 1998. "Coordinating Channels Under Price and Nonprice Competition," Marketing Science, INFORMS, vol. 17(4), pages 338-355.
    5. Danqin Yang & Tiaojun Xiao, 2017. "Coordination of a supply chain with loss-averse consumers in service quality," International Journal of Production Research, Taylor & Francis Journals, vol. 55(12), pages 3411-3430, June.
    6. 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.
    7. Xia, Yusen & Gilbert, Stephen M., 2007. "Strategic interactions between channel structure and demand enhancing services," European Journal of Operational Research, Elsevier, vol. 181(1), pages 252-265, August.
    8. Zhang, Jixiang & Da, Qingli & Wang, Yanhua, 2009. "The dynamics of Bertrand model with bounded rationality," Chaos, Solitons & Fractals, Elsevier, vol. 39(5), pages 2048-2055.
    9. Agiza, H.N. & Hegazi, A.S. & Elsadany, A.A., 2002. "Complex dynamics and synchronization of a duopoly game with bounded rationality," Mathematics and Computers in Simulation (MATCOM), Elsevier, vol. 58(2), pages 133-146.
    10. LiuWei Zhao, 2017. "Nonlinear Complex Dynamics of Carbon Emission Reduction Cournot Game with Bounded Rationality," Complexity, Hindawi, vol. 2017, pages 1-10, October.
    11. Abbink, Klaus & Brandts, Jordi, 2008. "24. Pricing in Bertrand competition with increasing marginal costs," Games and Economic Behavior, Elsevier, vol. 63(1), pages 1-31, May.
    12. Renzheng Xue & Fengbin Zhang & Feng Tian, 2018. "A System Dynamics Model to Evaluate Effects of Retailer-Led Recycling Based on Dual Chains Competition: A Case of e-Waste in China," Sustainability, MDPI, vol. 10(10), pages 1-18, September.
    13. Chen, Xu & Li, Ling & Zhou, Ming, 2012. "Manufacturer's pricing strategy for supply chain with warranty period-dependent demand," Omega, Elsevier, vol. 40(6), pages 807-816.
    14. Ting Li & Dongyun Yan & Shuxia Sui, 2020. "Research on the Complexity of Game Model about Recovery Pricing in Reverse Supply Chain considering Fairness Concerns," Complexity, Hindawi, vol. 2020, pages 1-13, May.
    15. Yande Gong & Mengze Chen & Yuliang Zhuang, 2019. "Decision-Making and Performance Analysis of Closed-Loop Supply Chain under Different Recycling Modes and Channel Power Structures," Sustainability, MDPI, vol. 11(22), pages 1-26, November.
    16. Qiuxiang Li & Mengmeng Li & Yimin Huang, 2020. "Dynamic Investigation in Green Supply Chain considering Channel Service," Complexity, Hindawi, vol. 2020, pages 1-18, July.
    17. R. Canan Savaskan & Shantanu Bhattacharya & Luk N. Van Wassenhove, 2004. "Closed-Loop Supply Chain Models with Product Remanufacturing," Management Science, INFORMS, vol. 50(2), pages 239-252, February.
    18. Ting Li & Dongyun Yan & Xiaogang Ma, 2019. "Stability Analysis and Chaos Control of Recycling Price Game Model for Manufacturers and Retailers," Complexity, Hindawi, vol. 2019, pages 1-13, July.
    19. Gian Italo Bischi & Carl Chiarella & Iryna Sushko (ed.), 2013. "Global Analysis of Dynamic Models in Economics and Finance," Springer Books, Springer, edition 127, number 978-3-642-29503-4, December.
    20. Dumrongsiri, Aussadavut & Fan, Ming & Jain, Apurva & Moinzadeh, Kamran, 2008. "A supply chain model with direct and retail channels," European Journal of Operational Research, Elsevier, vol. 187(3), pages 691-718, June.
    21. 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.
    22. Rand, David, 1978. "Exotic phenomena in games and duopoly models," Journal of Mathematical Economics, Elsevier, vol. 5(2), pages 173-184, September.
    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. Xuelong Zhang & Yuxin Xu & Xiaofan Chen & Jiuying Liang, 2023. "Pricing Decision Models of Manufacturer-Led Dual-Channel Supply Chain with Free-Rider Problem," Sustainability, MDPI, vol. 15(5), pages 1-20, February.

    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. Renbang Shan & Li Luo & Baoli Shi, 2023. "The choice of recycling strategies for decision-makers based on government subsidy and service budget," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(2), pages 1441-1472, February.
    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. Chen, Xu & Luo, Zheng & Wang, Xiaojun, 2019. "Compete or cooperate: Intensity, dynamics, and optimal strategies," Omega, Elsevier, vol. 86(C), pages 76-86.
    4. Xi, Xuan & Zhang, Jixiang, 2020. "Complexity analysis of a decision-making game concerning governments and heterogeneous agricultural enterprises with bounded rationality," Chaos, Solitons & Fractals, Elsevier, vol. 140(C).
    5. He, Qidong & Wang, Nengmin & Browning, Tyson R. & Jiang, Bin, 2022. "Competitive collection with convenience-perceived customers," European Journal of Operational Research, Elsevier, vol. 303(1), pages 239-254.
    6. Haitao Chen & Zhaohui Dong & Gendao Li, 2020. "Government Reward-Penalty Mechanism in Dual-Channel Closed-Loop Supply Chain," Sustainability, MDPI, vol. 12(20), pages 1-15, October.
    7. Qin, Xuelian & Liu, Zhixue & Tian, Lin, 2021. "The optimal combination between selling mode and logistics service strategy in an e-commerce market," European Journal of Operational Research, Elsevier, vol. 289(2), pages 639-651.
    8. Zhen-Zheng Zhang & Zong-Jun Wang & Li-Wen Liu, 2015. "Retail Services and Pricing Decisions in a Closed-Loop Supply Chain with Remanufacturing," Sustainability, MDPI, vol. 7(3), pages 1-24, February.
    9. Pun, Hubert & Chen, Jing & Li, Wei, 2020. "Channel strategy for manufacturers in the presence of service freeriders," European Journal of Operational Research, Elsevier, vol. 287(2), pages 460-479.
    10. 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.
    11. Matsui, Kenji, 2022. "Optimal timing of acquisition price announcement for used products in a dual-recycling channel reverse supply chain," European Journal of Operational Research, Elsevier, vol. 300(2), pages 615-632.
    12. Ghosh, Debabrata & Shah, Janat, 2015. "Supply chain analysis under green sensitive consumer demand and cost sharing contract," International Journal of Production Economics, Elsevier, vol. 164(C), pages 319-329.
    13. Ma, Lidan & Zhang, Rong & Guo, Sandang & Liu, Bin, 2012. "Pricing decisions and strategies selection of dominant manufacturer in dual-channel supply chain," Economic Modelling, Elsevier, vol. 29(6), pages 2558-2565.
    14. Wu, Cheng-Han, 2012. "Price and service competition between new and remanufactured products in a two-echelon supply chain," International Journal of Production Economics, Elsevier, vol. 140(1), pages 496-507.
    15. Ting Li & Dongyun Yan & Xiaogang Ma, 2019. "Stability Analysis and Chaos Control of Recycling Price Game Model for Manufacturers and Retailers," Complexity, Hindawi, vol. 2019, pages 1-13, July.
    16. Shangyu Pi & Yang Wang, 2020. "An E-Tailer’s Operational Strategy under Different Supply Chain Structures," Sustainability, MDPI, vol. 12(5), pages 1-20, March.
    17. B. C. Giri & B. R. Sarker, 2016. "Coordinating a two-echelon supply chain under production disruption when retailers compete with price and service level," Operational Research, Springer, vol. 16(1), pages 71-88, April.
    18. Xiaodong Yang & Gangshu (George) Cai & Charles A. Ingene & Jihong Zhang, 2020. "Manufacturer Strategy on Service Provision in Competitive Channels," Production and Operations Management, Production and Operations Management Society, vol. 29(1), pages 72-89, January.
    19. Zheng, Zhijun & Li, Gang & Cheng, T.C.E & Wu, Feng, 2022. "Offline supplementary service strategies for the online marketplace: Third-party service or marketplace service?," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 164(C).
    20. 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.

    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:gam:jsusta:v:12:y:2020:i:22:p:9348-:d:442960. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.