Journal
INTERNATIONAL JOURNAL OF PRODUCTION RESEARCH
Volume 55, Issue 18, Pages 5287-5304Publisher
TAYLOR & FRANCIS LTD
DOI: 10.1080/00207543.2017.1308571
Keywords
supply chain finance; fairness concerns; buyback guarantee financing; pricing/ordering strategy; stochastic demand
Categories
Funding
- National Natural Science Foundation of China [71501077, 71601079, 71520107001, 71420107024]
- Guangdong Natural Science Foundation [2014A030310212, 2015A070705001]
Ask authors/readers for more resources
The paper investigates pricing/ordering issues in a dyadic supply chain, in which a core supplier sells products through a budget-constrained retailer. The retailer faces stochastic demand and is fairness-concerned as well. If needed, the retailer can get financing support from bank by means of buyback guarantee financing (BGF) mode, which is often used in China. By introducing Nash bargaining solution as the fairness reference point, we formulate the retailer's fairness-concerned utility function and develop a two-echelon pricing/ordering game model. We then study the combined impacts of fairness concerns and BGF on two members' equilibrium strategies and supply chain performance. We also discuss the corresponding issues under no budget constraint, no financing service and bank financing. Our results show that: (1) two members' equilibrium strategies are significantly influenced by the retailer's fairness-concerned behaviour and initial budget; (2) as compared to no budget constraint, BGF can bring the whole supply chain more performance, which means that BGF can yield value-added; (3) When the retailer takes the risk of uncertain market solely, the retailer's fairness concerns are beneficial for supply chain to improve the performance.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available