Wholesale price versus buyback: A comparison of contracts in a supply chain with a behavioral retailer. (December 2021)
- Record Type:
- Journal Article
- Title:
- Wholesale price versus buyback: A comparison of contracts in a supply chain with a behavioral retailer. (December 2021)
- Main Title:
- Wholesale price versus buyback: A comparison of contracts in a supply chain with a behavioral retailer
- Authors:
- Vipin, B.
Amit, R.K. - Abstract:
- Highlights: Wholesale price contract can coordinate a behavioral supply chain in certain settings. We derive conditions under which buyback contract will not coordinate a supply chain. Our study investigates the structural properties of wholesale price contract. We validate our model with the experimental?ndings from the literature. Abstract: Traditional modeling in supply chain contract analysis shows that a wholesale price contract cannot coordinate a supply chain, whereas a buyback contract can coordinate. In this study, we consider a supply chain involving a risk-neutral supplier and a behavioral retailer under wholesale price and buyback contracts. We characterize the structural properties of the wholesale price contract in a supply chain with a behavioral retailer. Our study reveals that a wholesale price contract can coordinate a supply chain with a behavioral retailer under certain conditions. Under the same conditions, our analysis shows that a buyback contract coordinates the supply chain. Furthermore, we derive the conditions under which a buyback contract will not coordinate a supply chain involving a behavioral retailer. We validate our model with the existing experimental results on supply chain contracts. Finally, we show that a wholesale price contract can outperform a buyback contract in a supply chain having a behavioral retailer.
- Is Part Of:
- Computers & industrial engineering. Volume 162(2021)
- Journal:
- Computers & industrial engineering
- Issue:
- Volume 162(2021)
- Issue Display:
- Volume 162, Issue 2021 (2021)
- Year:
- 2021
- Volume:
- 162
- Issue:
- 2021
- Issue Sort Value:
- 2021-0162-2021-0000
- Page Start:
- Page End:
- Publication Date:
- 2021-12
- Subjects:
- Behavioral operations management -- Supply chain contracts -- Prospect theory -- Channel coordination
Engineering -- Data processing -- Periodicals
Industrial engineering -- Periodicals
620.00285 - Journal URLs:
- http://www.sciencedirect.com/science/journal/03608352 ↗
http://www.elsevier.com/journals ↗ - DOI:
- 10.1016/j.cie.2021.107689 ↗
- Languages:
- English
- ISSNs:
- 0360-8352
- Deposit Type:
- Legaldeposit
- View Content:
- Available online (eLD content is only available in our Reading Rooms) ↗
- Physical Locations:
- British Library DSC - 3394.713000
British Library DSC - BLDSS-3PM
British Library HMNTS - ELD Digital store - Ingest File:
- 20090.xml