Profit Of Supply Chain System Research Articles

Production mode and pricing coordination strategy of sustainable products considering consumers’ preference

In order to study the pricing and coordination of sustainable supply chain (SSC), this paper investigates the equilibrium results of different production modes under non-cooperative game and cooperative game aiming at the market segmentation demand of sustainable products (SP), environment-friendly products (EFP) and general products (GP) which coexist and can be replaced under different preference levels. Theoretical analysis shows that when consumers have different preference coefficients for products, the critical zone of the manufacturer to choose production modes can be determined, and the system performance under cooperative game is significantly better than that under non-cooperative game. Through the cooperative pricing strategy of Rubinstein bargaining coordination, pareto optimization of profits of supply chain system and its members can be realized under different production modes. The system profits are 33.3% higher than that of non-cooperative game. The analysis of examples further verifies the influence of different production modes and the effectiveness of the coordinated pricing strategy.

Optimization decision of cooperative emission reduction of clothing supply chain based on carbon tax

Clothing products will cause environmental pollution while promoting economic development. The government collects carbon tax on clothing products to restrict the carbon emission of enterprises. In order to protect the environment and reduce the carbon tax penalty, Stackelberg model is established to compare the optimal decision-making and profit under the centralized decision-making and decentralized decision-making. It is found that no matter whether it is centralized decision or decentralized decision making, the retail price of clothing, carbon emission reduction and clothing demand increase with the increase of carbon tax, while the profit of supply chain system shows a downward trend. We can also get manufacturers and retailers can get higher supply chain system profits under centralized decision-making, and can meet the needs of environment, market and enterprises at the same time.

The optimal order quantity, quality investment, and specification limits settings for the production and supply model

ABSTRACT Supply chain is the operation of the flow of goods and services, and includes all processes that transform raw materials into final products. It involves the active streamlining of a business's supply-side activities to maximize customer value and gain a competitive advantage in the marketplace. In recent years, many researchers have proposed the integrated supply chain models with production, inspection, maintenance and quality. Chuang and Wu (2019) developed an integrated model to determine the optimum supplier’s process mean and quality investment settings and retailer’s number of shipment, order quantity and maximum backorder quantity with maximization of total profit of supply chain system. In the present paper, Chuang and Wu’s model is modified with the constraint of the specified process capability index Cpm value, where the mean and standard deviation of process characteristic are assumed to be the declining exponential reduction function. The decision variables in this modified model include supplier’s parameters (i.e., quality investment and specification limits) and retailer’s parameters (i.e., order quantity, number of shipments and maximum backorder quantity). A numerical example is provided for illustration. Based on the sensitivity analysis, it may be seen that the supply chain’s total profit is positively influenced by the production rate, the demand rate, the purchasing cost, the selling price and the quality investment, and is negatively affected by the production cost, the specified process capability index, the target value, the maximum mean and both the minimum and the maximum standard deviations of process characteristic.

Research on competitive strategy of dynamic supply chain with network effect

The network effect gains demand-side economies of scale that have a significant impact on profit, price and demand in business. The paper presents a supply chain model with duopolistic competition in terms of decentralized and centralized decision making processes that consider the network effect. First, by establishing the differential equation of network size that is a function of the network investment, the paper presents the supply chain model with dynamic competition. Then, in order to maximize the supply chain profit, the optimal value of the optimal strategy is obtained by solving the differential game. The optimal value of the optimal policy about wholesale production, retail price and effort rate is obtained. In results, in the first stage of network cycle, the profits of supply chain system with centralized decision is lower than that with decentralized decision-making, but with the passage of time, the profits will be phased in over decentralized decision situation with the greater gap.

Strategy of Production and Ordering in Closed-loop Supply Chain under Stochastic Yields and Stochastic Demands

A closed-loop supply chain system consisting of one manufacturer with random yield and one retailer with random demand is discussed in this paper. The models of expected profit of supply chain system are founded under centralized decision and decentralized decision, respectively. The optimal strategies of yield and order are obtained in two modes. It is proved that the order of retailer is not affected by yield randomness. That is showed by numerical example, the results show: the scheduled production of new product for manufacture will decrease and the total profit and each participant of supply chain will increase as recovery price increases, when the cost of remanufacturing production is lower than the new product.

Pricing-Decision and Coordination Contract considering Product Design and Quality of Recovery Product in a Closed-Loop Supply Chain

In a closed-loop supply chain consisting of a manufacturer and a retailer, this paper studies the pricing strategies and coordination mechanism of supply chain when the remanufacturing cost is random caused by the proportion of reusability parts in design stage and quality condition of recycling product. The results show that the wholesale price and retail price are negative correlation, while the recycling rate and total profit of supply chain system are positive correlation with the proportion of reusability component designed in new product and quality of recycling product. Moreover, there are conclusions that the wholesale price and retail price are lower while the recycling rate and total profit of supply chain system are higher with centralized decision. Then, in order to coordinate the closed-loop supply chain, this paper develops a revenue-sharing contract, in which the revenue share parameter is determined based on absolute deviation approach. The theoretical results are illustrated by a numerical example.

Modified Optimum Profit Model with Commission Fee and Quality Investment

In this paper, the author modifies Chen and Liu’s (2008) model by considering both consignment policy and quality investment. Taguchi’s (1986) quadratic quality loss function is adopted for evaluating the product quality. The optimal parameters of manufacturer’s quality investment and commission fee and retailer’s economic order quantity are simultaneously determined by maximizing the expected profit of supply chain system. A comparative study between the modified model with/without quality investment is provided for illustration. Numerical results show that the modified Chen and Liu’s (2008) model with quality investment has a larger order quantity, a smaller per unit commission, a larger fixed commission fee increase, a larger manufacturer’s expected profit, a larger retailer’s expected profit, and a larger expected profit of the supply-chain system than those of one without quality investment.