Browsing by Author "Shi, CS"

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A manufacturer's optimal quantity discount strategy and return policy through game-theoretic approach
(2002-08-01)
Su, CT
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Shi, CS
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工業工程與管理學系
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Department of Industrial Engineering and Management
This study generalised the traditional quantity discount problem with return contracts, in which a manufacturer promises to refund some fraction of the retailer's wholesale price if an item is returned, as a two-stage game. In the first stage the manufacturer and retailer determine the inventory level cooperatively. In the second stage, the manufacturer bargains with the retailer for quantity discount and return schemes to maintain channel efficiency. A menu of discount-return combinations is proposed for the manufacturer to make inventory decisions. The model developed will demonstrate that the return policy can be considered as mirror images of quantity discount strategy. That is, options with more generous return privileges are coupled with higher wholesale prices, whereas the lowest wholesale price comes with very strict limits on returns and a restocking fee for any returned goods.
Improving supply chain efficiency via option premium incentive
(2002-04-01)
Shi, CS
;
Su, CT
;
工業工程與管理學系
;
Department of Industrial Engineering and Management
This study considers a supply chain, including one manufacturer and one retailer, in which stochastic demand and return policy is focused upon. When each site aims to maximize its individual profitability, decentralized control may arise in the system. From the overall system's point of view, the decentralized supply chain will not be as efficient as the centralized one. Various studies have attempted to resolve the inefficiency of supply chains. However, such studies have focused on the optimization from retailer's perspective only and thus ignored manufacturer's interest. This study emphasizes manufacture's self-interested situation and determines optimal production quantity. Furthermore, it will contribute to decentralized control with the retailer offering option premium. It is also demonstrated that the Pareto efficiency can be attained in the supply chain by employing the option premium incentive.
Integrated inventory model of returns-quantity discounts contract
(2004-03-01)
Shi, CS
;
Su, CT
;
工業工程與管理學系
;
Department of Industrial Engineering and Management
In the traditional inventory problem, to secure demand risk a retailer often requests the right to return unsold goods, although this is associated with higher wholesale prices. Various studies have attempted to illustrate the returns scenario. However, these studies have focused on optimization from the retailer's perspective only, and have thus ignored the fact that the manufacturer might have no incentive to accept returns. This study takes account of the self-interest of both the retailer and the manufacturer, and demonstrates that a quantity discount scheme should provide the manufacturer with incentive to accept returns. A three-stage theoretical model is developed and presented to illustrate the returns-quantity discounts contract, and demonstrates that the contract is self-enforcing. Furthermore, it is demonstrated that Pareto efficiency can be attained in the model. The scenarios are illustrated through a numerical example.