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Analysis of product return rate and price competition in two supply chains
Zheng, Yanyan1; Shu, Tong1; Wang, Shouyang1,2; Chen, Shou1; Lai, Kin Keung3,4; Gan, Lu5
2018-07-01
Source PublicationOPERATIONAL RESEARCH
ISSN1109-2858
Volume18Issue:2Pages:469-496
AbstractThis article compares a normal and a reverse supply chain in the Betrand Competition. Each supply chain consists of a retailer and an exclusive supplier with stable partnership. The two chains compete with each other in three competition structures: the Centralized Competition Game, the Hybrid Competition Game (including two cases), and the Decentralized Competition Game. In different competition structures, we examine how the degree of competition intensity between the two chains and product return rate of the reverse chain influence the equilibrium decision of market price, profits of two chains and the choice of centralization. The article differs from the study of the traditional supply chain model as follows. Firstly, we analyze the normal and the reverse chain related to the same product in the Betrand competition. Secondly, the data show that the market price decreases with the rising of the product return rate and the falling of the competition intensity. Thirdly, it is found that the total profit of the normal chain decreases with the rising of the product return rate, while the total profit of the reverse chain increases with rising of the product return rate. Profits of two chains increase with the rise of the competition intensity. Finally, this article shows that centralization is an optimal strategy for one chain whereas centralization may be the best for the other chain.
KeywordSupply chains Betrand competition Competition intensity Product return rate Competition structures Optimal strategy
DOI10.1007/s12351-016-0273-6
Language英语
Funding ProjectNational Natural Science Foundation of China[71172194] ; National Natural Science Foundation of China[71390330] ; National Natural Science Foundation of China[71390331] ; National Natural Science Foundation of China[71521061] ; National Natural Science Foundation of China[71571065] ; National Natural Science Foundation of China[71390335] ; Program for New Century Excellent Talents in University[NCET-13-0193] ; Ministry of Education in China of Humanities and Social Science Project[14YJA630077]
WOS Research AreaOperations Research & Management Science
WOS SubjectOperations Research & Management Science
WOS IDWOS:000434725400009
PublisherSPRINGER HEIDELBERG
Citation statistics
Cited Times:4[WOS]   [WOS Record]     [Related Records in WOS]
Document Type期刊论文
Identifierhttp://ir.amss.ac.cn/handle/2S8OKBNM/30425
Collection系统科学研究所
Affiliation1.Hunan Univ, Sch Business, Changsha 410082, Hunan, Peoples R China
2.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100080, Peoples R China
3.Shaanxi Normal Univ, Int Business Sch, Xian 710062, Shaanxi, Peoples R China
4.City Univ Hong Kong, Dept Management Sci, Tat Chee Ave, Kowloon, Hong Kong, Peoples R China
5.Hunan Univ, Off Humanities & Social Sci, Changsha 410082, Hunan, Peoples R China
Recommended Citation
GB/T 7714
Zheng, Yanyan,Shu, Tong,Wang, Shouyang,et al. Analysis of product return rate and price competition in two supply chains[J]. OPERATIONAL RESEARCH,2018,18(2):469-496.
APA Zheng, Yanyan,Shu, Tong,Wang, Shouyang,Chen, Shou,Lai, Kin Keung,&Gan, Lu.(2018).Analysis of product return rate and price competition in two supply chains.OPERATIONAL RESEARCH,18(2),469-496.
MLA Zheng, Yanyan,et al."Analysis of product return rate and price competition in two supply chains".OPERATIONAL RESEARCH 18.2(2018):469-496.
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