New product presale is a strategic behavior of manufacturers to transfer inventory risks to consumers. The research purpose of this paper is to examine the presale discount, inventory, and service level decisions in an e-commerce supply chain, where the first period is the presale period and the second is the selling period for the new product. First, consumers were divided into two types—those who are risk averse and those who are not. Then, considering different presale discounts applied for new products, three presale strategy models were discussed: no-presale strategy, presale strategy with a moderate discount, and complete presale strategy, and the optimal decisions of e-commerce supply chain members were obtained under different valuations of the new product by consumers. Finally, the effects of the correlation coefficient between the numbers of the two types of consumers, the loss aversion degree of consumers, and the marginal profit in the sales period on the optimal discounted price and the maximum expected profit were analyzed. The conclusions of this article show that the presale strategy is not always optimal but depends on the parameters of the market and the type of consumers. For example, when the correlation coefficient between the two types of consumers is high, it is more profitable for the suppliers if they choose the presale strategy with a moderate discount, while e-commerce platforms tend to adopt the no-presale strategy. The optimal discounted price in the complete presale case is not necessarily lower than that in the moderately discounted presale case. If the marginal profit is high in the normal sales period or consumers are less averse to losses, suppliers are more likely to adopt the complete presale strategy. The research conclusions provide some theoretical reference for companies in the development of new product presale strategies in the e-commerce supply chain.
With the increasing public awareness of environmental issues, green production has become an important issue for supply chain management. This study proposes an analytical model to investigate the dual-channel green supply chain decisions of a retailer and a competitive supplier; the latter suffers from unreliable production yield. The retailer’s environmental responsibility is considered as a two-echelon supply chain in which the retailer promotes the green product in their marketplace through green marketing. This problem is analyzed and modeled under three available channel strategies, considered in the order in which channel selections are made: a single online channel strategy, a single retail channel strategy, and a dual-channel strategy. The results show that the wholesale price of the manufacturer and the green-marketing effect of the retailer increase with the improvement in the level of the green production technology. Interestingly, the result reveals that a retailer’s expected profit is unimodal in the production technology level under the dual-channel strategy, which suggests that the retailer may not be incentivized to encourage the manufacturer to improve its production technology once a threshold has been reached. Further, we develop the channel selection: the retailer is strictly better off in the single retail channel scenario than that in the dual-channel scenario; however, while the unreliable supplier is better off in the single online channel scenario than that in the single retail channel scenario, its best option is still the dual-channel strategy. Additionally, numerical results illustrate that the expected profits of supply chain parties decrease with the improvement in customer acceptance of the online channel.
1 January 2019 in Applied Ecology and Environmental Research
Purpose: The purpose of this paper is to extend the analysis of the distribution-free newsvendor problem in an environment of customer balking, which occurs when customers are reluctant to buy a product if its available inventory falls below a threshold level. Design/methodology/approach: We provide a new tradeoff tool as a replacement of the traditional one to weigh the holding cost and the goodwill costs segment: in addition to the shortage penalty, we also introduce the balking penalty. Furthermore, we extend our model to the case of random yield. Findings: A model is presented for determining both an optimal order quantity and a lower bound on the profit under the worst possible distribution of the demand. We also study the effects of shortage penalty and the balking penalty on the optimal order quantity, which have been largely bypassed in the existing distribution free single period models with balking. Numerical examples are presented to illustrate the result. Originality/value: The incorporation of balking penalty and random yield represents an important improvement in inventory policy performance for distribution-free newsvendor problem when customer balking occurs and the distributional form of demand is unknown.
The equivalent conditions of complete convergence are established for weighted sums of-mixing random variables with different distributions. Our results extend and improve the Baum and Katz complete convergence theorem. As an application, the Marcinkiewicz-Zygmund type strong law of large numbers for sequence of-mixing random variables is obtained.