Supply Chain Model for Product Repulsion

Subrata Saha; Izabela Ewa Nielsen; Ilkyeong Moon

doi:10.1007/978-3-031-16407-1_64

Supply Chain Model for Product Repulsion

Subrata Saha^*, Izabela Ewa Nielsen, Ilkyeong Moon

^*Kontaktforfatter

Publikation: Bidrag til bog/antologi/rapport/konference proceeding › Konferenceartikel i proceeding › Forskning › peer review

Abstract

This study investigates the effect of product deletion strategy on the profitability of a supply chain while the manufacturer sells both high-and-low quality products. We formulate models to explore optimal supply chain decisions consisting of one manufacturer and one retailer in four scenarios based on the manufacturer’s decision to continue both products, only low-quality products, and only high-quality products, or introduce a new product with adjusted quality. The result reflects that a manufacturer can maximize profit by offering only low-quality products or products with adjusted quality based on consumer valuation. If the manufacturer modifies the quality of existing products, total selling quality might be high even if its quality is low when consumers’ preferences remain unchanged. Continuation of both products or only high-quality products does not always ensure higher profits.

Originalsprog	Engelsk
Titel	Advances in Production Management Systems. Smart Manufacturing and Logistics Systems : Turning Ideas into Action - IFIP WG 5.7 International Conference, APMS 2022, Proceedings
Redaktører	Duck Young Kim, Gregor von Cieminski, David Romero
Antal sider	7
Forlag	Springer
Publikationsdato	2022
Sider	543-549
ISBN (Trykt)	9783031164064
DOI	https://doi.org/10.1007/978-3-031-16407-1_64
Status	Udgivet - 2022
Begivenhed	IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2022 - Gyeongju, Sydkorea Varighed: 25 sep. 2022 → 29 sep. 2022

Konference

Konference	IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2022
Land/Område	Sydkorea
By	Gyeongju
Periode	25/09/2022 → 29/09/2022

Navn	I F I P Advances in Information and Communication Technology
Vol/bind	663 IFIP
ISSN	1868-4238

Bibliografisk note

Publisher Copyright:
© 2022, IFIP International Federation for Information Processing.

Adgang til dokumentet

10.1007/978-3-031-16407-1_64

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Citationsformater

Saha, S., Nielsen, I. E., & Moon, I. (2022). Supply Chain Model for Product Repulsion. I D. Y. Kim, G. von Cieminski, & D. Romero (red.), Advances in Production Management Systems. Smart Manufacturing and Logistics Systems: Turning Ideas into Action - IFIP WG 5.7 International Conference, APMS 2022, Proceedings (s. 543-549). Springer. https://doi.org/10.1007/978-3-031-16407-1_64

Saha, Subrata ; Nielsen, Izabela Ewa ; Moon, Ilkyeong. / Supply Chain Model for Product Repulsion. Advances in Production Management Systems. Smart Manufacturing and Logistics Systems: Turning Ideas into Action - IFIP WG 5.7 International Conference, APMS 2022, Proceedings. red. / Duck Young Kim ; Gregor von Cieminski ; David Romero. Springer, 2022. s. 543-549 (I F I P Advances in Information and Communication Technology, Bind 663 IFIP).

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title = "Supply Chain Model for Product Repulsion",

abstract = "This study investigates the effect of product deletion strategy on the profitability of a supply chain while the manufacturer sells both high-and-low quality products. We formulate models to explore optimal supply chain decisions consisting of one manufacturer and one retailer in four scenarios based on the manufacturer{\textquoteright}s decision to continue both products, only low-quality products, and only high-quality products, or introduce a new product with adjusted quality. The result reflects that a manufacturer can maximize profit by offering only low-quality products or products with adjusted quality based on consumer valuation. If the manufacturer modifies the quality of existing products, total selling quality might be high even if its quality is low when consumers{\textquoteright} preferences remain unchanged. Continuation of both products or only high-quality products does not always ensure higher profits.",

keywords = "Manufacturing, Product elimination, Quality, Supply chain",

author = "Subrata Saha and Nielsen, {Izabela Ewa} and Ilkyeong Moon",

note = "Publisher Copyright: {\textcopyright} 2022, IFIP International Federation for Information Processing.; IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2022 ; Conference date: 25-09-2022 Through 29-09-2022",

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Saha, S , Nielsen, IE & Moon, I 2022, Supply Chain Model for Product Repulsion. i DY Kim, G von Cieminski & D Romero (red), Advances in Production Management Systems. Smart Manufacturing and Logistics Systems: Turning Ideas into Action - IFIP WG 5.7 International Conference, APMS 2022, Proceedings. Springer, I F I P Advances in Information and Communication Technology, bind 663 IFIP, s. 543-549, IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2022, Gyeongju, Sydkorea, 25/09/2022. https://doi.org/10.1007/978-3-031-16407-1_64

Supply Chain Model for Product Repulsion. / Saha, Subrata ; Nielsen, Izabela Ewa; Moon, Ilkyeong.
Advances in Production Management Systems. Smart Manufacturing and Logistics Systems: Turning Ideas into Action - IFIP WG 5.7 International Conference, APMS 2022, Proceedings. red. / Duck Young Kim; Gregor von Cieminski; David Romero. Springer, 2022. s. 543-549 (I F I P Advances in Information and Communication Technology, Bind 663 IFIP).

Publikation: Bidrag til bog/antologi/rapport/konference proceeding › Konferenceartikel i proceeding › Forskning › peer review

TY - GEN

T1 - Supply Chain Model for Product Repulsion

AU - Saha, Subrata

AU - Nielsen, Izabela Ewa

AU - Moon, Ilkyeong

PY - 2022

Y1 - 2022

N2 - This study investigates the effect of product deletion strategy on the profitability of a supply chain while the manufacturer sells both high-and-low quality products. We formulate models to explore optimal supply chain decisions consisting of one manufacturer and one retailer in four scenarios based on the manufacturer’s decision to continue both products, only low-quality products, and only high-quality products, or introduce a new product with adjusted quality. The result reflects that a manufacturer can maximize profit by offering only low-quality products or products with adjusted quality based on consumer valuation. If the manufacturer modifies the quality of existing products, total selling quality might be high even if its quality is low when consumers’ preferences remain unchanged. Continuation of both products or only high-quality products does not always ensure higher profits.

AB - This study investigates the effect of product deletion strategy on the profitability of a supply chain while the manufacturer sells both high-and-low quality products. We formulate models to explore optimal supply chain decisions consisting of one manufacturer and one retailer in four scenarios based on the manufacturer’s decision to continue both products, only low-quality products, and only high-quality products, or introduce a new product with adjusted quality. The result reflects that a manufacturer can maximize profit by offering only low-quality products or products with adjusted quality based on consumer valuation. If the manufacturer modifies the quality of existing products, total selling quality might be high even if its quality is low when consumers’ preferences remain unchanged. Continuation of both products or only high-quality products does not always ensure higher profits.

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KW - Product elimination

KW - Quality

KW - Supply chain

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Saha S , Nielsen IE, Moon I. Supply Chain Model for Product Repulsion. I Kim DY, von Cieminski G, Romero D, red., Advances in Production Management Systems. Smart Manufacturing and Logistics Systems: Turning Ideas into Action - IFIP WG 5.7 International Conference, APMS 2022, Proceedings. Springer. 2022. s. 543-549. (I F I P Advances in Information and Communication Technology, Bind 663 IFIP). doi: 10.1007/978-3-031-16407-1_64