Consumer returns policies with endogenous deadline and supply chain coordination

European Journal of Operational Research

Volumn 242, Issue 1, 2015, Pages 88-99

  Xu, Lei ^a,b   Li, Yongjian ^b   Govindan, Kannan ^c   Xu, Xiaolin ^d  

^a TIANJIN UNIVERSITY OF TECHNOLOGY   (China)

^b NANKAI UNIVERSITY   (China)

^c UNIVERSITY OF SOUTHERN DENMARK   (Denmark)

^d NANJING UNIVERSITY   (China)

Author keywords

Buy back contract; Consumer behavior; Product returns; Return deadline; Supply chain management

Indexed keywords

ECONOMICS; LIFE CYCLE; RISK MANAGEMENT; SALES; SUPPLY CHAIN MANAGEMENT;

BEHAVIORAL FACTORS; BUY BACK CONTRACTS; INVENTORY POLICIES; PRODUCT RETURNS; PRODUCT-LIFE-CYCLE; RETURN DEADLINE; RETURNS POLICIES; SUPPLY CHAIN COORDINATION;

CONSUMER BEHAVIOR;

EID: 84920731124     PISSN: 03772217     EISSN: None     Source Type: Journal    
DOI: 10.1016/j.ejor.2014.09.049     Document Type: Article

References (56)

1. Aviv, Y., & Pazgal, A. (2008). Optimal pricing of seasonal products in the presence of forward-looking consumers. Manufacturing & Service Operations Management, 10(3), 339-359.
2. Baiman, S., Fischer, P. E., & Rajan, M. V. (2000). Information, contracting and quality costs. Management Science, 46(6), 776-789.
3. Bandyopadhyay, S., & Paul, A. A. (2012). Equilibrium returns policies in the presence of supplier competition. Marketing Science, 29 (5), 846-857.
4. Bernstein, F., & Federgruen, A. (2005). Decentralized supply chains with competing retailers under demand uncertainty. Management Science, 51(1), 18-29.
5. Bhargava, H. K., & Chen, R. R. (2012). The benefit of information asymmetry: When to sell to informed customers. Decision Support Systems, 53(2), 345-356.
6. Cachon, G. P. (2003). Supply chain coordination with contracts. In S. C. Graves, & A. G. de Kok (Eds.), Supply chain management design, coordination and operation. Vol. II: Handbooks in OR&MS (pp. 229-339). Amsterdam: North Holland.
7. Cachon, G. P., & Swinney, R. (2009). Purchasing, pricing and quick response in the presence of strategic consumers. Management Science, 55(3), 497-511.
8. Che, Y. K. (1996). Consumer return policies for experience goods. The Journal of Industrial Economics, 44(1), 17-24.
9. Chen, J., & Bell, P. (2011). The impact of customer returns on decisions in a newsvendor problem with and without buyback policies. International Transactions in Operational Research, 18(4), 473-491.
10. Cohen, M. A., Pierskalla, W. P., & Nahmias, S. (1980). A dynamic inventory system with recycling. Naval Research Logistics, 27(2), 289-296.
11. Courty, P. (2003). Ticket pricing under demand uncertainty. The Journal of Law & Economics, 46(2), 627-652.
12. Dana, J. D., Jr,&Petruzzi, N. C. (2001). The newsvendor model with endogenous demand. Management Science, 47(11), 1488-1497.
13. Davis, S., Gerstner, E., & Hagerty, M. (1995). Money back guarantees: Helping retailers market experience goods. Journal of Retailing, 72(2), 7-22.
14. Davis, S., Hagerty, M., & Gerstner, E. (1998). Return policies and the optimal level of "hassle". Journal of Economics and Business, 50(5), 445-460.
15. Earnest, L., & Uribarri, A. G. (2007, February 28). Costco halts liberal electronics return policy. Los Angeles Times.
16. Elmaghraby, W., Gülcü, A., & Keskinocak, P. (2008). Designing optimal preannounced markdowns in the presence of rational consumers with multiunit demands. Manufacturing & Service Operations Management, 10(1), 126-148.
17. Emmons, H., & Gilbert, S.M. (1998). The role of returns policies in pricing and inventory decisions for catalogue goods. Management Science, 44(2), 276-283.
18. Ferguson, M., Guide, V.D. R., Jr.,&Souza, G. C. (2006). Supply chain coordination for false failure returns. Manufacturing & Service Operations Management, 8(4), 376-393.
19. Fleischmann, M., Kuik, R., & Dekker, R. (2002). Controlling inventories with stochastic item returns: A basic model. European Journal of Operational Research, 138(1), 63-75.
20. Govindan, K., & Popiuc, M. N. (2014). Reverse supply chain coordination by revenue sharing contract: A case for the personal computers industry. European Journal of Operational Research, 233(2), 326-336. doi:10.1016/j.ejor.2013.03.023.
21. Govindan, K., Popiuc, M. N., & Diabat, A. (2013). Overview of coordination contracts within forward and reverse supply chains. Journal of Cleaner Production, 47, 319-334. doi:10.1016/j.jclepro.2013.02.001.
22. Govindan, K., Soleimani, H., & Kannan, D. (2014). Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. European Journal of Operational Research, 240(3), 603-626.
23. Guide, V. D. R., Jr., Souza, G. C., Van Wassenhove, L. N., & Blackburn, J. D. (2006). Time value of commercial product returns. Management Science, 52(8), 1200-1214.
24. Hart, C. (1988). The power of unconditional service guarantees. Harvard Business Review, 66(4), 36-43.
25. Hess, J. D., & Mayhew, G. E. (1997). Modelingmerchandise returns in direct marketing. Journal of Interactive Marketing, 11(2), 20-35.
26. Huang, X., Choi, S. M., Ching, W. K., Siu, T. K., & Huang, M. (2011). On supply chain coordination for false failure returns: A quantity discount contract approach. International Journal of Production Economics, 133(2), 634-644.
27. Janakiraman, N., & Ordóñez, L. (2012). Effect of effort and deadlines on consumer product returns. Journal of Consumer Psychology, 22(2), 260-271.
28. Kelle, P., & Silver, E. A. (1989). Purchasing policy of new containers considering the random returns of previously issued containers. IIE Transactions, 21(4), 349-354.
29. Kirmani, A., & Rao, A. R. (2000). No pain, no gain: A critical review of the literature on signaling unobservable product quality. The Journal of Marketing, 64(2), 66-79.
30. Kopalle, P. K., Rao, A. G., & Assunc¸ão, J. L. (1996). Asymmetric reference price effects and dynamic pricing policies. Marketing Science, 15(1), 60-85.
31. Kumar, N., Guide, V.D. R., Jr., & Van Wassenhove, L.N. (2002). Managing product returns at Hewlett Packard. Fontainebleau, France: INSEAD Teaching Case.
32. Lawton, C. (2008). The war on returns. Wall Street Journal, 1, 18.
33. Lee, H. L., Padmanabhan, V., Taylor, T. A., & Whang, S. (2000). Price protection in the personal computer industry. Management Science, 46(4), 467-482.
34. Li, Y., Xu, L., & Li, D. (2013). Examining relationships between the return policy, product quality, and pricing strategy in online direct selling. International Journal of Production Economics, 144(2), 451-460.
35. Liu, Q., & van Ryzin, G. J. (2008). Strategic capacity rationing to induce early purchases. Management Science, 54(6), 1115-1131.
36. Longo, T., & Nayalkar, S. (1995). At stores, many unhappy returns. Kiplinger's Personal Finance Magazine, 49(6), 103-104.
37. Merrick, A., & Brat, I. (2005). Taking back that blender gets harder-Sears is the latest retailer to tighten returns policy; howto avoid being refused. The Wall Street Journal, D.1 (Eastern edition).
38. Mukhopadhyay, S. K., & Setaputra, R. (2004). Reverse logistics in e-business: Optimal price and return policy. International Journal of Physical Distribution and Logistics Management, 34(1), 70-89.
39. Mukhopadhyay, S. K., & Setaputra, R. (2007). A dynamic model for optimal design quality and return policies. European Journal of Operational Research, 180(3), 1144-1154.
40. Nasiry, J., & Popescu, I. (2011). Dynamic pricing with loss averse consumers and peakend anchoring. Operations Research, 59(6), 1361-1368.
41. Ofek, E., Katona, Z., & Sarvary, M. (2011). "Bricks and clicks": The impact of product returns on the strategies of multichannel retailers. Marketing Science, 30(1), 42-60.
42. Oraiopoulos, N., Ferguson, M. E., & Toktay, L. B. (2012). Relicensing as a secondary market strategy. Management Science, 58(5), 1022-1037.
43. Padmanabhan, V., & Png, I. P. L. (1997). Manufacturer's returns policies and retail competition. Marketing Science, 16(1), 81-94.
44. Pasternack, B. A. (1985). Optimal pricing and returns policies for perishable commodities. Marketing Science, 4(2), 166-176.
45. Popescu, I., & Wu, Y. (2007). Dynamic pricing strategies with reference effects. Operations Research, 55(3), 413-429.
46. Shear, H., Speh, T., & Stock, J. (2002). Many happy (product) returns. Harvard Business Review, 80(7), 16-17.
47. Shulman, J. D., Coughlan, A. T., & Savaskan, R. C. (2009). Optimal restocking fees and information provision in an integrated demand-supply model of product returns. Manufacturing & Service Operations Management, 11(4), 577-594.
48. Shulman, J. D., Coughlan, A. T., & Savaskan, R. C. (2010). Optimal reverse channel structure for consumer product returns. Marketing Science, 29(6), 1071-1085.
49. Shulman, J. D., Coughlan, A. T., & Savaskan, R. C. (2011). Managing consumer returns in a competitive environment. Management Science, 57(2), 347-362.
50. Su, X. (2007). Intertemporal pricing with strategic consumer behavior. Management Science, 53(5), 726-741.
51. Su, X. (2009). Consumer returns policies and supply chain performance. Manufacturing & Service Operations Management, 11(4), 595-612.
52. Su, X., & Zhang, F. (2007). Strategic consumer behavior, commitment, and supply chain performance. Management Science, 54(10), 1759-1773.
53. Su, X., & Zhang, F. (2009). On the value of inventory information and availability guarantees when selling to strategic consumers. Management Science, 55(5), 713-726.
54. Taylor, T. A. (2002). Supply chain coordination under channel rebates with sales effort effects. Management Science, 48(8), 992-1007.
55. Xiao, T., Shi, K., & Yang, D. (2010). Coordination of a supply chain with consumer return under demand uncertainty. International Journal of Production Economics, 124(1), 171-180.
56. Xiao, T., Yang, D.,&Shen, H. (2011). Coordinating a supply chain with a quality assurance policy via a revenue-sharing contract. International Journal of Production Research, 49(1), 99-120.