Pricing and Warranty Decisions of Substitutable Products for a Fuzzy Two-Echelon Supply Chain
This paper considers the optimal decisions of pricing and warranty level for substitutable products in a fuzzy supply chain environment, where the consumer demands, manufacturing costs, and warranty costs are characterized as fuzzy variables. Expected value manufacturer-leader Stackelberg models and...
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| Format: | Article |
| Language: | English |
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Wiley
2017-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2017/8476516 |
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| _version_ | 1832558259107528704 |
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| author | Yongzhao Wang |
| author_facet | Yongzhao Wang |
| author_sort | Yongzhao Wang |
| collection | DOAJ |
| description | This paper considers the optimal decisions of pricing and warranty level for substitutable products in a fuzzy supply chain environment, where the consumer demands, manufacturing costs, and warranty costs are characterized as fuzzy variables. Expected value manufacturer-leader Stackelberg models and two chance-constrained programming models, that is, the λ-optimistic and λ-pessimistic manufacturer-leader Stackelberg models, are established. The corresponding closed-form solutions are obtained by using the game-theoretical approach and fuzzy theory. Finally, numerical examples are presented to illustrate the effectiveness of the models and to provide managerial insights for decision makers. The results show that it would be beneficial for the whole supply chain when the warranty services are introduced into the market, and the firm which provides the warranty service has the advantage in holding more dominant position. |
| format | Article |
| id | doaj-art-8bc8060451e341c8976643683d41720d |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2017-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-8bc8060451e341c8976643683d41720d2025-02-03T01:32:52ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2017-01-01201710.1155/2017/84765168476516Pricing and Warranty Decisions of Substitutable Products for a Fuzzy Two-Echelon Supply ChainYongzhao Wang0School of Mathematics and Statistics, Anyang Normal University, Xuange Avenue 436, Anyang, ChinaThis paper considers the optimal decisions of pricing and warranty level for substitutable products in a fuzzy supply chain environment, where the consumer demands, manufacturing costs, and warranty costs are characterized as fuzzy variables. Expected value manufacturer-leader Stackelberg models and two chance-constrained programming models, that is, the λ-optimistic and λ-pessimistic manufacturer-leader Stackelberg models, are established. The corresponding closed-form solutions are obtained by using the game-theoretical approach and fuzzy theory. Finally, numerical examples are presented to illustrate the effectiveness of the models and to provide managerial insights for decision makers. The results show that it would be beneficial for the whole supply chain when the warranty services are introduced into the market, and the firm which provides the warranty service has the advantage in holding more dominant position.http://dx.doi.org/10.1155/2017/8476516 |
| spellingShingle | Yongzhao Wang Pricing and Warranty Decisions of Substitutable Products for a Fuzzy Two-Echelon Supply Chain Discrete Dynamics in Nature and Society |
| title | Pricing and Warranty Decisions of Substitutable Products for a Fuzzy Two-Echelon Supply Chain |
| title_full | Pricing and Warranty Decisions of Substitutable Products for a Fuzzy Two-Echelon Supply Chain |
| title_fullStr | Pricing and Warranty Decisions of Substitutable Products for a Fuzzy Two-Echelon Supply Chain |
| title_full_unstemmed | Pricing and Warranty Decisions of Substitutable Products for a Fuzzy Two-Echelon Supply Chain |
| title_short | Pricing and Warranty Decisions of Substitutable Products for a Fuzzy Two-Echelon Supply Chain |
| title_sort | pricing and warranty decisions of substitutable products for a fuzzy two echelon supply chain |
| url | http://dx.doi.org/10.1155/2017/8476516 |
| work_keys_str_mv | AT yongzhaowang pricingandwarrantydecisionsofsubstitutableproductsforafuzzytwoechelonsupplychain |