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Analysis of the Impact of Return Price on Competing Supply Chains

In: Liss 2012

Author

Listed:
  • Jian Liu

    (Southeast University)

  • Haiyan Wang

    (Southeast University)

Abstract

In this paper, we build the model of two competing supply chains in the presence of customer returns. The competition exists on retail price and return price. We examine the optimal pricing and ordering strategy of two competing supply chains in the Bertrand-Nash equilibrium and Stackelberg equilibrium respectively, and then analyze the impact of return price on supply chains. We conclude that the optimal price, order quantity and profits in the Stackelberg equilibrium are affected more greatly by return price than that in the Bertrand-Nash equilibrium.

Suggested Citation

  • Jian Liu & Haiyan Wang, 2013. "Analysis of the Impact of Return Price on Competing Supply Chains," Springer Books, in: Zhenji Zhang & Runtong Zhang & Juliang Zhang (ed.), Liss 2012, edition 127, pages 175-180, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-32054-5_26
    DOI: 10.1007/978-3-642-32054-5_26
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