×

Pricing decision problem in dual-channel supply chain based on experts’ belief degrees. (English) Zbl 1398.90071

Summary: This paper considers a pricing decision problem in supply chain with traditional offline channel and e-commence online channel. In such supply chains, in face of highly changeable and unpredictable markets, for the lack of historical data, channel managers usually have to rely on belief degrees given by experienced experts to make pricing decisions. However, surveys have shown that these human estimations are generally take much wider ranges than they really take. Thus, uncertain measure is developed to deal with these human belief degrees and three uncertain programming models are employed to derive how channel members should make their pricing decisions under three power structures. Besides, analytical comparisons and numerical experiments are conducted to examine the effects of the power structures and experts’ estimations on the equilibrium prices and expected profits. It is revealed that the existence of dominant power, regardless of who holds the leadership, will hurt the efficiency of the channel by decreasing the profit of the whole supply chain. However, from the viewpoint of the individual firms, the firm gains the most profit as a leader while it gains the lowest as a follower. We also find that consumers will suffer from higher prices facing uncertain environment. The supply chain members may benefit from higher uncertainty level of their own costs, whereas the other channel members will gain less profits. Some other managerial highlights are also presented in this paper.

MSC:

90B50 Management decision making, including multiple objectives
90C70 Fuzzy and other nonstochastic uncertainty mathematical programming
PDFBibTeX XMLCite
Full Text: DOI

References:

[1] Bernstein, F; Federgruen, A, Decentralized supply chains with competing retailers under demand uncertainty, Manag Sci, 51, 18-29, (2005) · Zbl 1232.90171 · doi:10.1287/mnsc.1040.0218
[2] Chen, L; Peng, J; Liu, Z; Zhao, R, Pricing and effort decisions for a supply chain with uncertain information, Int J Prod Res, (2016) · doi:10.1080/00207543.2016.1204475
[3] Chen, YC; Fang, SC; Wen, UP, Pricing policies for substitutable products in a supply chain with Internet and traditional channels, Eur J Oper Res, 224, 542-551, (2013) · Zbl 1292.90042 · doi:10.1016/j.ejor.2012.09.003
[4] Chiang, WK; Chhajed, D; Hess, JD, Direct marketing, indirect profits: a strategic analysis of dual-channel supply-chain design, Manag Sci, 49, 1-20, (2003) · Zbl 1232.90231 · doi:10.1287/mnsc.49.1.1.12749
[5] Choi, SC, Price competition in a channel structure with a common retailer, Mark Sci, 10, 271-296, (1991) · doi:10.1287/mksc.10.4.271
[6] Ding, Q; Dong, C; Pan, Z, A hierarchical pricing decision process on a dual-channel problem with one manufacturer and one retailer, Int J Prod Econ, 175, 197-212, (2016) · doi:10.1016/j.ijpe.2016.02.014
[7] Dumrongsiri, A; Fan, M; Jain, A; Moinzadeh, K, A supply chain model with direct and retail channels, Eur J Oper Res, 187, 691-718, (2008) · Zbl 1137.91388 · doi:10.1016/j.ejor.2006.05.044
[8] EMarketer (2015) Worldwide retail ecommerce sales: emarketer’s updated estimates and forecast through 2019. http://www.emarketer.com/Report/Worldwide-Retail-Ecommerce-Sales-eMarketers-Updated-Estimates-Forecast-Through-20192001716
[9] Gao, Y; Qin, Z, A chance constrained programming approach for uncertain p-hub center location problem, Comput Ind Eng, 102, 10-20, (2016) · doi:10.1016/j.cie.2016.09.017
[10] Gao, Y; Qin, Z, On computing the edge-connectivity of an uncertain graph, IEEE Trans Fuzzy Syst, 24, 981-991, (2016) · doi:10.1109/TFUZZ.2015.2500267
[11] Gao, Y; Yang, L; Li, S; Kar, S, On distribution function of the diameter in uncertain graph, Inf Sci, 296, 61-74, (2015) · Zbl 1360.05131 · doi:10.1016/j.ins.2014.10.048
[12] Gao, Y; Yang, L; Li, S, Uncertain models on railway transportation planning problem, Appl Math Model, 40, 4921-4934, (2016) · Zbl 1459.90021 · doi:10.1016/j.apm.2015.12.016
[13] Hua, Z; Li, S; Liang, L, Impact of demand uncertainty on supply chain cooperation of single-period products, Int J Prod Econ, 100, 268-284, (2006) · doi:10.1016/j.ijpe.2004.11.007
[14] Huang H, Ke H (2017) Pricing decision problem for substitutable products based on uncertainty theory. J Intell Manuf 28(3):503-514
[15] Huang H, Ke H, Che Y (2016) Equilibrium analysis of channel structure strategies in uncertain environment. J Uncertain Anal Appl 4(1):Article 8
[16] Ke H (2014) A genetic algorithm-based optimizing approach for project time-cost trade-off with uncertain measure. J Uncertain Anal Appl 2(1):Article 8
[17] Ke, H; Su, T; Ni, Y, Uncertain random multilevel programming with application to production control problem, Soft Comput, 19, 1739-1746, (2015) · Zbl 1364.90236 · doi:10.1007/s00500-014-1361-2
[18] Ke, H; Huang, H; Ralescu, DA; Wang, L, Fuzzy bilevel programming with multiple non-cooperative followers: model, algorithm and application, Int J Gen Syst, 45, 336-351, (2016) · Zbl 1346.90836 · doi:10.1080/03081079.2015.1086579
[19] Lee, E; Staelin, R, Vertical strategic interaction: implications for channel pricing strategy, Mark Sci, 16, 185-207, (1997) · doi:10.1287/mksc.16.3.185
[20] Li, B; Chen, P; Li, Q; Wang, W, Dual-channel supply chain pricing decisions with a risk-averse retailer, Int J Prod Res, 52, 7132-7147, (2014) · doi:10.1080/00207543.2014.939235
[21] Liu B (2007) Uncertainty theory. Springer, Berlin · Zbl 1141.28001 · doi:10.1007/978-3-540-73165-8_5
[22] Liu, B, Some research problems in uncertainty theory, J Uncertain Syst, 3, 3-10, (2009)
[23] Liu B (2010) Uncertainty theory. Springer, Berlin · doi:10.1007/978-3-642-13959-8
[24] Liu, S; Xu, Z, Stackelberg game models between two competitive retailers in fuzzy decision environment, Fuzzy Optim Decis Making, 13, 33-48, (2014) · Zbl 1429.91163 · doi:10.1007/s10700-013-9165-x
[25] Liu, Y; Ha, M, Expected value of function of uncertain variables, J Uncertain Syst, 4, 181-186, (2010)
[26] Ma, S; Lin, J; Zhao, X, Online store discount strategy in the presence of consumer loss aversion, Int J Prod Econ, 171, 1-7, (2016) · doi:10.1016/j.ijpe.2015.10.016
[27] Ma, W; Che, Y; Huang, H; Ke, H, Resource-constrained project scheduling problem with uncertain durations and renewable resources, Int J Mach Learn Cybernet, 7, 613-621, (2016) · doi:10.1007/s13042-015-0444-4
[28] McGuire, TW; Staelin, R, An industry equilibrium analysis of downstream vertical integration, Mark Sci, 2, 161-191, (1983) · doi:10.1287/mksc.2.2.161
[29] Shi, R; Zhang, J; Ru, J, Impacts of power structure on supply chains with uncertain demand, Prod Oper Manag, 22, 1232-1249, (2013)
[30] Soleimani, F, Optimal pricing decisions in a fuzzy dual-channel supply chain, Soft Comput, 20, 689-696, (2016) · Zbl 1370.90016 · doi:10.1007/s00500-014-1532-1
[31] Wang L, Huang H, Ke H (2015) Chance-constrained model for RCPSP with uncertain durations. J Uncertain Anal Appl 3(1):Article 12
[32] Wang, W; Li, G; Cheng, T, Channel selection in a supply chain with a multi-channel retailer: the role of channel operating costs, Int J Prod Econ, 173, 54-65, (2016) · doi:10.1016/j.ijpe.2015.12.004
[33] Webb, KL, Managing channels of distribution in the age of electronic commerce, Ind Mark Manag, 31, 95-102, (2002) · doi:10.1016/S0019-8501(01)00181-X
[34] Zadeh, LA, Fuzzy sets, Inf Control, 8, 338-353, (1965) · Zbl 0139.24606 · doi:10.1016/S0019-9958(65)90241-X
[35] Zhao, J; Tang, W; Zhao, R; Wei, J, Pricing decisions for substitutable products with a common retailer in fuzzy environments, Eur J Oper Res, 216, 409-419, (2012) · Zbl 1237.91104 · doi:10.1016/j.ejor.2011.07.026
[36] Zhao, J; Wei, J; Li, Y, Pricing decisions for substitutable products in a two-echelon supply chain with firms different channel powers, Int J Prod Econ, 153, 243-252, (2014) · doi:10.1016/j.ijpe.2014.03.005
This reference list is based on information provided by the publisher or from digital mathematics libraries. Its items are heuristically matched to zbMATH identifiers and may contain data conversion errors. In some cases that data have been complemented/enhanced by data from zbMATH Open. This attempts to reflect the references listed in the original paper as accurately as possible without claiming completeness or a perfect matching.