Optimal return price and modular design under two-echelon supply chain
碩士 === 國立成功大學 === 工業與資訊管理學系碩博士班 === 95 === Since the product demands are uncertain, retailers are allowed to return unsold products to manufacturers under return policies. Return policies motivate more orders from retailers, hence the inventory of manufacturers could be reduced. On the other hand, r...
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| Format: | Others |
| Language: | zh-TW |
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2007
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| Online Access: | http://ndltd.ncl.edu.tw/handle/80252302873253031522 |
| Summary: | 碩士 === 國立成功大學 === 工業與資訊管理學系碩博士班 === 95 === Since the product demands are uncertain, retailers are allowed to return unsold products to manufacturers under return policies. Return policies motivate more orders from retailers, hence the inventory of manufacturers could be reduced. On the other hand, returned policies will cut down the profit because products can not be resold after the selling season. Therefore, manufacturers introduce the concept of modularity to reduce loss for the returned products. Modularity is defined as that one product is composed of several modular devices which the returned products can be also separated into.
This study focuses on the two-echelon supply chain with one manufacturer and numerous retailers. The manufacturer is capable of modular production. Production cost and salvage depend on the degree of modularity. Manufacturer and retailers play the roles of leader and followers respectively and maximize their own profits. Manufacturer would like to determine the optimal return price and degree of modularity. Retailers then figure out the optimal ordering based on the return price provided by the manufacturer.
We find that the optimal return price and degree of modularity are positive related. The order quantity and retailers’ profits rise when the refund is increased. Meanwhile, more order quantity will cause the manufacturer to choose higher degree of modularity to reduce production cost. The study also investigates the sensitivity of profit and decision with respect to demand variation and modular parameters.
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