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.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
- 2.
en.wikipedia.org/wiki/Samsung_Galaxy_F_series.
References
Amaldoss, W., Shin, W.: Multitier store brands and channel profits. J. Mark. Res. 52(6), 754–767 (2015)
Banker, R.D., Khosla, I., Sinha, K.K.: Quality and competition. Manag. Sci. 44(9), 1179–1192 (1998)
Moorthy, K.S.: Product and price competition in a duopoly. Mark. Sci. 7(2), 141–168 (1988)
Dey, K., Saha, S.: Influence of procurement decisions in two-period green supply chain. J. Clean. Prod. 190, 388–402 (2018)
Dey, K., Roy, S., Saha, S.: The impact of strategic inventory and procurement strategies on green product design in a two-period supply chain. Int. J. Prod. Res. 57(7), 1915–1948 (2019)
Katana, T., Eriksson, A., Hilletofth, P., Eriksson, D.: Decision model for product rollover in manufacturing operations. Prod. Plan. Control 28(15), 1264–1277 (2017)
Kotler, P.: A Framework for Marketing Management. Pearson Education Limited, London (2016)
Nielsen, I.E., Saha, S.: Procurement planning in a multi-period supply chain: an epiphany. Oper. Res. Perspect. 5, 383–398 (2018)
Pourhejazy, P., Sarkis, J., Zhu, Q.: A fuzzy-based decision aid method for product deletion of fast moving consumer goods. Expert Syst. Appl. 119, 272–288 (2019)
Shi, X., Shen, B.: Product upgrading or not: R &D tax credit, consumer switch and information updating. Int. J. Prod. Econ. 213, 13–22 (2019)
Varadarajan, R., DeFanti, M.P., Busch, P.S.: Brand portfolio, corporate image, and reputation: managing brand deletions. J. Acad. Mark. Sci. 34(2), 195–205 (2006)
Zhu, Q., Shah, P., Sarkis, J.: Addition by subtraction: integrating product deletion with lean and sustainable supply chain management. Int. J. Prod. Econ. 205, 201–214 (2018)
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2022 IFIP International Federation for Information Processing
About this paper
Cite this paper
Saha, S., Nielsen, I.E., Moon, I. (2022). Supply Chain Model for Product Repulsion. In: Kim, D.Y., von Cieminski, G., Romero, D. (eds) Advances in Production Management Systems. Smart Manufacturing and Logistics Systems: Turning Ideas into Action. APMS 2022. IFIP Advances in Information and Communication Technology, vol 663. Springer, Cham. https://doi.org/10.1007/978-3-031-16407-1_64
Download citation
DOI: https://doi.org/10.1007/978-3-031-16407-1_64
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-031-16406-4
Online ISBN: 978-3-031-16407-1
eBook Packages: Computer ScienceComputer Science (R0)
