The Impact of Positive Externality on Returns Policy
This paper studies the impact of positive externality upon a supply chain in which returns policy is used to coordinate the channel. We focus on a typical situation where the retailer can internalize the positive externality effect while the manufacturer can not. We find that the retailer will overstock than channel optimal quantity. When the effect of externality is stronger or returns compensation is greater, the retailers order quantity deviates more from channel optimal decision. When returns policy is offered,the positive externality effect will benefit the retailer but hurt the manufacturer.
Externality through sales Returns policy Newsvendor model Stochastic model
Xu Chuanyong Liang Liang Gou Qinglong Zha Yong Zhou Chuiri
School of Management, Univ.of Sci.& Tech.of China, Hefei 230026 P.R.China
国际会议
第六届管理学国际会议(Proceedings of ICM2007 the 6th International on Management)
武汉
英文
260-268
2007-08-03(万方平台首次上网日期,不代表论文的发表时间)