The Impact of Used Products on Channel Coordination and Quality Decision for Warranted Products.

碩士 === 淡江大學 === 企業管理學系碩士班 === 98 === In the context of globalization, diversified requirements and shortening of product life cycle, a large number of companies attend better to the efficiency of the overall supply chain in order to improve competitiveness. If firms want to effectively manage the su...

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Bibliographic Details
Main Authors: Jung-Jung Lin, 林容榕
Other Authors: Hui-Chiung Lo
Format: Others
Language:zh-TW
Published: 2010
Online Access:http://ndltd.ncl.edu.tw/handle/26064485019357175580
Description
Summary:碩士 === 淡江大學 === 企業管理學系碩士班 === 98 === In the context of globalization, diversified requirements and shortening of product life cycle, a large number of companies attend better to the efficiency of the overall supply chain in order to improve competitiveness. If firms want to effectively manage the supply chain, the most important is to solve the coordination problem of manufacturers and distributors. In order to improve channel performance and increase profits, the firm’s most important objective is to achieve the coordination of the supper chan. In the supply of products, if the products are durable goods that the characteristic of the products is not immediately damage when used, which will affect sales of new products because of used product. So, when the firm makes the sales and supply strategy, it must consider the affect of used product on the sales decision of new products. In addition, firms usually provide a after-sales service, product warranty, in order to enhance the consumer''s purchase intention, but it will increase warranty costs which have the correlation with quality. Therefore, for the design of effective supply chain system, quality decision-making must be considered. To produce products to meet customer demand and increase profits, firms not only need to consider the issues of the channel coordination and the quality decision-making, but also consider the affect of the used products on the sales decision of new durable products with warranty. In view of the above mentioned, under the influence of used products, this study derive optimal strategies of new products for distributed and integrated channels, including pricing and order ratio. In a distributed channel, this study will apply the concept of cost sharing to warranty costs in order to reduce the risk of the manufacturer, and then promote the channel coordination. The paper develops a model to determine the optimal order ration, price and warranty cost-sharing ratio that maximizes the total profits of distributed channel for a durable of products with warranty. In addition, this study will consider the quality of decision-making and find the optimal quality level, when the design cost of products is considered. Our study indicates the following conclusions through the numerical analysis. First, the durable level of warranted products is higher and then ratio of used products is also higher. It will affect the sales profit of new products. Therefore, firms will take it into consideration when they make decisions about new products. Second, when firms make quality decisions, manufacturers in the distributed channel have to take warranty cost and design cost into account. Hence, they will produce products of lower quality, but retailers will sale products of the highest quality. Besides, firms who are in integrated channel will produce the products which quality level is between manufacturers and retailers’. For this reason, the optimal decisions change with decision’s goal for members who are in distributed channel and integrated channel. Finally, firms use integrated channel’s police to do channel coordination. It will increase total profit and whole channel efficiency. If manufacturers share profit which is increased by changing channel policy with retailers, retailers’ cooperative desire will be increased. It makes coordination better in channel.