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

^*Corresponding author for this work

Research output: Contribution to book/anthology/report/conference proceeding › Article in proceeding › Research › 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.

Original language	English
Title of host publication	Advances in Production Management Systems. Smart Manufacturing and Logistics Systems : Turning Ideas into Action - IFIP WG 5.7 International Conference, APMS 2022, Proceedings
Editors	Duck Young Kim, Gregor von Cieminski, David Romero
Number of pages	7
Publisher	Springer
Publication date	2022
Pages	543-549
ISBN (Print)	9783031164064
DOIs	https://doi.org/10.1007/978-3-031-16407-1_64
Publication status	Published - 2022
Event	IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2022 - Gyeongju, Korea, Republic of Duration: 25 Sept 2022 → 29 Sept 2022

Conference

Conference	IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2022
Country/Territory	Korea, Republic of
City	Gyeongju
Period	25/09/2022 → 29/09/2022

Series	I F I P Advances in Information and Communication Technology
Volume	663 IFIP
ISSN	1868-4238

Bibliographical note

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

Keywords

Manufacturing
Product elimination
Quality
Supply chain

Access to Document

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

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Cite this

Saha, S., Nielsen, I. E., & Moon, I. (2022). Supply Chain Model for Product Repulsion. In D. Y. Kim, G. von Cieminski, & D. Romero (Eds.), Advances in Production Management Systems. Smart Manufacturing and Logistics Systems: Turning Ideas into Action - IFIP WG 5.7 International Conference, APMS 2022, Proceedings (pp. 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. editor / Duck Young Kim ; Gregor von Cieminski ; David Romero. Springer, 2022. pp. 543-549 (I F I P Advances in Information and Communication Technology, Vol. 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",

year = "2022",

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series = "I F I P Advances in Information and Communication Technology",

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Saha, S , Nielsen, IE & Moon, I 2022, Supply Chain Model for Product Repulsion. in DY Kim, G von Cieminski & D Romero (eds), 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, vol. 663 IFIP, pp. 543-549, IFIP WG 5.7 International Conference on Advances in Production Management Systems, APMS 2022, Gyeongju, Korea, Republic of, 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. ed. / Duck Young Kim; Gregor von Cieminski; David Romero. Springer, 2022. p. 543-549 (I F I P Advances in Information and Communication Technology, Vol. 663 IFIP).

Research output: Contribution to book/anthology/report/conference proceeding › Article in proceeding › Research › peer-review

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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 - Supply chain

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Saha S , Nielsen IE, Moon I. Supply Chain Model for Product Repulsion. In Kim DY, von Cieminski G, Romero D, editors, 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. p. 543-549. (I F I P Advances in Information and Communication Technology, Vol. 663 IFIP). doi: 10.1007/978-3-031-16407-1_64