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Article

Qi Zheng, Petros Ieromonachou, Tijun Fan and Li Zhou

Fresh product loss rates in supply chain operations are particularly high due to the nature of perishable products. The purpose of this paper is to maximize profit through…

Abstract

Purpose

Fresh product loss rates in supply chain operations are particularly high due to the nature of perishable products. The purpose of this paper is to maximize profit through the contract between retailer and supplier. The optimized prices for the retailer and the supplier, taking the fresh-keeping effort into consideration, are derived.

Design/methodology/approach

To address this issue, the authors consider a two-echelon supply chain consisting of a retailer and a supplier (i.e. wholesaler) for two scenarios: centralized and decentralized decision making. The authors start from investigating the optimal decision in the centralized supply chain and then comparing the results with those of the decentralized decision. Meanwhile, a fresh-keeping cost-sharing contract and a fresh-keeping cost- and revenue-sharing contract are designed. Numerical examples are provided, and managerial insights are discussed at the end.

Findings

The results show that the centralized decision is more profitable than the decentralized decision; a fresh product supply chain (FPSC) can only be coordinated through a fresh-keeping cost- and revenue-sharing contract; the optimal retail price, wholesale price and fresh-keeping effort can all be achieved; and the profit of a FPSC is positively related to consumers’ sensitivity to freshness and negatively correlated with their sensitivity to price.

Research limitations/implications

This research is based on the assumption that demand is relatively stable. It has not addressed when demand is stochastic.

Practical implications

The findings would be useful for managers in fresh food sector in terms of how to deal with suppliers in order to maximize total profit while also provide freshest food to the customers.

Originality/value

Few studies have considered fresh-keeping effort as a decision variable in the modelling of supply chain. In this paper, a mathematical model for the fresh-keeping effort and for price decisions in a supply chain is developed. In particular, fresh-keeping cost-sharing contract and revenue-sharing contract are examined simultaneously in the study of the supply chain coordination problem.

Details

Industrial Management & Data Systems, vol. 117 no. 3
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Yuewu Tang, Yang Song, Chang Xu and Tijun Fan

Using information systems via data mining and cluster analysis technologies, consumers' strategic behaviour can be measured, and their patience levels can be accurately…

Abstract

Purpose

Using information systems via data mining and cluster analysis technologies, consumers' strategic behaviour can be measured, and their patience levels can be accurately described. This paper investigates the retailer's pricing and ordering policies when facing strategic consumers with different levels of patience and discusses the impacts of consumers' patience levels and proportions on retailers' maximum expected profits.

Design/methodology/approach

By cluster analysing transaction data on the number of websites visited, browsing time and purchase decision time, consumers' patience levels can be obtained. The authors formulate a newsvendor model considering customers' different patience levels. Three scenarios are investigated: two segments of consumers with two different levels of patience (Scenario I), multiple segments of consumers with different levels of patience (Scenario II) and a continuum of consumers whose levels of patience follow a continuous distribution (Scenario III). Then, general formulas are deduced for retailers' optimal prices, ordering quantities and profits.

Findings

Under Scenario I, if the proportion of less patient consumers is greater (less) than a threshold, the retailer's optimal price is equal to the less (more) patient consumers' reserve price. Under Scenario II, once the proportion of fully strategic consumers exceeds a certain threshold, the retailers' optimal price is equal to the fully strategic consumers' reserve price regardless of consumers' patience levels and proportions. Under Scenario III, the retailer's pricing and ordering policies depend on the distribution of their patience level.

Originality/value

Few studies have considered consumers' different levels of patience when making retailer pricing and ordering decisions. In this paper, strategic consumer behaviour is measured, and consumers' patience levels and proportions are obtained by cluster analysing consumer transaction data recorded by an information system. Three scenarios in which strategic consumers may be heterogeneous and have different patience levels are investigated. The results can guide retailer decision-making.

Details

Industrial Management & Data Systems, vol. 121 no. 2
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Gaoxiang Lou, Zhixuan Lai, Haicheng Ma and Tijun Fan

The purpose of this paper is to find the optimal power structure that drives green practices in the supply chain and coordinate the costs and benefits of green practices…

Abstract

Purpose

The purpose of this paper is to find the optimal power structure that drives green practices in the supply chain and coordinate the costs and benefits of green practices in supply chain under different power structures.

Design/methodology/approach

This paper developed a supply chain of one supplier and one manufacturer, in which the supplier and the manufacturer are responsible for the “greening” of products. Then, the game theory modeling method is used to explore the influence of different power structures on green practices in the supply chain. Finally, the authors developed a green cost-sharing contract made by the leader; regarding optimal supply chain profits and green performance, the proposed contracts and the non-coordination situation are compared and tested by a numerical simulation.

Findings

The increase of the green practice difficulty of any member in the supply chain will not only reduce the greenness of products at that stage but will also reduce the green investment of the supply chain partner. Becoming a channel leader does not necessarily mean being more profitable than being a follower, and when the green practice difficulty of the leader is less than a certain threshold, ceding dominant power to the follower may benefit both sides. A green cost-sharing contract made by the leader is not necessarily beneficial to all enterprises.

Originality/value

This paper helps to better understand the role of the power relation in realizing the industry's green goals and helps decision-makers to achieve win-win cooperation by adjusting power relations and optimizing green cost-sharing contracts.

Details

Industrial Management & Data Systems, vol. 120 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Tijun Fan, Yang Song, Huan Cao and Haiyang Xia

The purpose of this paper is to find the optimal environmental quality criteria for a strategic eco-labeling authority with three objectives (i.e. maximizing the aggregate…

Abstract

Purpose

The purpose of this paper is to find the optimal environmental quality criteria for a strategic eco-labeling authority with three objectives (i.e. maximizing the aggregate environmental quality, maximizing the industry profit and maximizing the social welfare). Particularly, the authors investigate how the existence of imperfectly informed consumers affects labeling criteria determination and competition among firms.

Design/methodology/approach

A game-theoretic modeling approach was adopted in this paper. A three-stage sequential game was modeled and backward induction was used to solve for a subgame perfect Nash equilibrium. To investigate the impacts of the existence of imperfectly informed consumers, the equilibrium, if all consumers are perfectly informed of the eco-label, was studied as a benchmark.

Findings

A more strict eco-labeling criterion improves revenues for both the labeled and unlabeled firms. It is interesting to find that the eco-labeling criteria to maximize industry profits are stricter than the criteria to maximize social welfare. Moreover, when the fraction of imperfectly informed consumers increases, the eco-labeling criteria to maximize aggregate environmental quality or industry profits will be more strict, while the criteria to maximize the social welfare will be looser.

Originality/value

The authors analyze the equilibrium strategies for firms against the eco-labeling criteria certified by authority with different objectives. The obtained optimal labeling strategies could provide insightful guidelines for the certifying authority to select the best suitable labeling criteria to achieve its goals.

Details

Industrial Management & Data Systems, vol. 119 no. 6
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Debao Dai, Wenfang Zheng and Tijun Fan

The purpose of this paper is to compare and evaluate the personal cloud storage products (PCSPs) in China and find the gap among them for promoting their service level…

Abstract

Purpose

The purpose of this paper is to compare and evaluate the personal cloud storage products (PCSPs) in China and find the gap among them for promoting their service level. There are five representative products including Baidu cloud, Tencent cloud, Qihoo 360-cloud, Kingsoft cloud and Huawei DBank.

Design/methodology/approach

This study, first, extracts corresponding indicators based on the extant literature to evaluate PCSPs, and then collects the data about each index by investigation and the performance test, finally proposes a model to rank PCSPs, which applies analytic hierarchy process (AHP) to determine the indexed weights and the technique for order preference by similarity to ideal solution-grey relational analysis calculate evaluation score of each PCSP.

Findings

Among them, Qihoo 360-cloud gets the highest evaluation score contributed by large space, file editing and fast transmission speed. The rest are Kingsoft cloud, Baidu cloud, Huawei DBank and Tencent cloud in order. These storage products are all want of the addition or improvement of the online editing service similar as Google Docs.

Research limitations/implications

AHP method is subjective, some of the data is incomplete, and some accidental error and systematic error exist in the actual testing process.

Practical implications

The findings can assist users in selecting more suitable products and offer cloud storage providers (CSPs) a general direction of improving their product performance.

Social implications

Contributing to improve the overall level of the cloud storage services in China.

Originality/value

The study perfects the evaluation index system of the PCSP and fills the research gap in studying PCSPs in China, and expands the application field of the multiple criteria decision-making problems. This evaluation process and results have implied that CSPs in China should provide good services of large capacity, cooperation and security with the good internet environment of economical, high and stable speed by institutions and internet access providers.

Details

Industrial Management & Data Systems, vol. 117 no. 1
Type: Research Article
ISSN: 0263-5577

Keywords

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Article

Ömer Savaş

This study aims to investigate the production and abrasive wear rate of functionally graded TiB2/Al composites. TiB2 particles have been spontaneously formed in liquid…

Abstract

Purpose

This study aims to investigate the production and abrasive wear rate of functionally graded TiB2/Al composites. TiB2 particles have been spontaneously formed in liquid matrix using in situ technique. The properties of composites such as hardness, abrasive wear rate and microstructure have been examined.

Design/methodology/approach

In situ TiB2 reinforcement phase was synthesized by using a liquid Al–Ti–B system. A semi-solid composite (Al(l)-TiB2(s)) prepared at 900°C was solidified under a centrifugal force to both grade functionally and give the final shape to materials. Abrasive wear test of materials was conducted using the pin-on-disk method at room temperature. The wear tests were carried out with two different loads of 1 Newton (N) and 2 N, a sliding velocity of 3.5 m s−1 and a sliding distance of 75 m.

Findings

This research provided the following findings; TiB2 particles can be successfully synthesized with in situ reaction technique in molten aluminum. It was determined that abrasive wear rate increases with increasing load and decreases with increasing TiB2 reinforcement content within matrix.

Originality/value

In previous studies, there have been many trials on the in situ production of TiB2-reinforced aluminum matrix composites. However, there are few studies on production of in situ TiB2-reinforced aluminum matrix functionally graded materials. At the same time, there is no study that the properties of composite, such as hardness and abrasive wear rate, are examined together according to centrifugal force.

Peer review

The peer review history for this article is available at: https://publons.com/publon/10.1108/ILT-12-2019-0538/

Details

Industrial Lubrication and Tribology, vol. 72 no. 10
Type: Research Article
ISSN: 0036-8792

Keywords

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