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Research on Differential Pricing and Coordination Mechanism of Second-Class Supply Chain of New Products and Remanufactured Products

In: Recent Developments in Data Science and Business Analytics

Author

Listed:
  • Hubiao Li

    (School of business, Zhengzhou University)

Abstract

Based on the price sensitivity of consumer products and the degree of substitutability of products, this paper analyzes the optimal pricing strategy of manufacturer, manufacturer and retailer. By comparing the total profit of decentralized decision and centralized decision supply chain, it is found that the decentralized decision can lead to the “marginal effect”, which leads to the loss of supply chain efficiency. Therefore, the Shapley value method is used to study the coordination of supply chain. Finally, through the numerical simulation analysis of two kinds of consumer decision mode of unit product price sensitivity and the product can replace the influence on the sales price and the profit of the supply chain members profit changes.

Suggested Citation

  • Hubiao Li, 2018. "Research on Differential Pricing and Coordination Mechanism of Second-Class Supply Chain of New Products and Remanufactured Products," Springer Proceedings in Business and Economics, in: Madjid Tavana & Srikanta Patnaik (ed.), Recent Developments in Data Science and Business Analytics, chapter 0, pages 3-14, Springer.
    • Handle: RePEc:spr:prbchp:978-3-319-72745-5_1
    DOI: 10.1007/978-3-319-72745-5_1
    as

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