Pareto Improving Supply Chain Coordination Under a Money-Back Guarantee Service Program

Published Online:https://doi.org/10.1287/serv.2016.0153

References

  • Ai X, Chen J, Zhao H, Tang X (2012) Competition among supply chains: Implications of full returns policy. Internat. J. Production Econom. 139(1):257–265.CrossrefGoogle Scholar
  • Arcelus FJ, Kumar S, Srinivasan G (2008) Evaluating manufacturer’s buyback policies in a single-period two-echelon framework under price-dependent stochastic demand. Omega 36(5):808–824.CrossrefGoogle Scholar
  • Babich V, Li H, Ritchken P, Wang Y (2012) Contracting with asymmetric demand information in supply chains. Eur. J. Oper. Res. 217(2):333–341.CrossrefGoogle Scholar
  • Becker-Peth M, Katok E, Thonemann UW (2013) Designing buyback contracts for irrational but predictable newsvendors. Management Sci. 59(8):1800–1816.LinkGoogle Scholar
  • Cachon GP (2003) Supply chain coordination with contracts. Graves S, de Kok T, eds. Handbooks in Operations Research and Management Science: Supply Chain Management (North-Holland, Amsterdam), 229–340.CrossrefGoogle Scholar
  • Chen J (2011) The impact of sharing customer returns information in a supply chain with and without a buyback policy. Eur. J. Oper. Res. 213(3):478–488.CrossrefGoogle Scholar
  • Chen J, Bell PC (2011) Coordinating a decentralized supply chain with customer returns and price-dependent stochastic demand using a buyback policy. Eur. J. Oper. Res. 212(2):293–300.CrossrefGoogle Scholar
  • Chen J, Bell PC (2012) Implementing market segmentation using full-refund and no-refund customer returns policies in a dual-channel supply chain structure. Internat. J. Production Econom. 136(1):56–66.CrossrefGoogle Scholar
  • Choi TM (2013) Optimal return service charging policy for a fashion mass customization program. Service Sci. 5(1):56–68.LinkGoogle Scholar
  • Choi TM, Li J, Wei Y (2013) Will a supplier benefit from sharing good information with a retailer? Decision Support Systems 56(December):131–139.CrossrefGoogle Scholar
  • Choi TM, Li D, Yan H (2008) Mean–variance analysis of a single supplier and retailer supply chain under a returns policy. Eur. J. Oper. Res. 184(1):356–376.CrossrefGoogle Scholar
  • Davis S, Gerstner E, Hagerty M (1995) Money back guarantees in retailing: Matching products to consumer tastes. J. Retailing 71(1):7–22.CrossrefGoogle Scholar
  • Devangan L, Amit RK, Mehta P, Swami S, Shanker K (2013) Individually rational buyback contracts with inventory level dependent demand. Internat. J. Production Econom. 142(2):381–387.CrossrefGoogle Scholar
  • Emmons H, Gilbert SM (1998) Note. The role of returns policies in pricing and inventory decisions for catalogue goods. Management Sci. 44(2):276–283.LinkGoogle Scholar
  • Ferguson M, Guide Jr VDR, Souza GC (2006) Supply chain coordination for false failure returns. Manufacturing Service Oper. Management 8(4):376–393.LinkGoogle Scholar
  • Govindan K, Popiuc MN, Diabat A (2013) Overview of coordination contracts within forward and reverse supply chains. J. Cleaner Production 47(May):319–334.CrossrefGoogle Scholar
  • Govindan K, Soleimani H, Kannan D (2015) Reverse logistics and closed-loop supply chain: A comprehensive review to explore the future. Eur. J. Oper. Res. 240(3):603–626.CrossrefGoogle Scholar
  • Guide Jr VDR, Souza GC, Van Wassenhove LN, Blackburn JD (2006) Time value of commercial product returns. Management Sci. 52(8):1200–1214.LinkGoogle Scholar
  • Gürler Ü, Yılmaz A (2010) Inventory and coordination issues with two substitutable products. Appl. Math. Modelling 34(3):539–551.CrossrefGoogle Scholar
  • He Y, Zhao X (2012) Coordination in multi-echelon supply chain under supply and demand uncertainty. Internat. J. Production Econom. 139(1):106–115.CrossrefGoogle Scholar
  • He Y, Zhao X, Zhao L, He J (2009) Coordinating a supply chain with effort and price dependent stochastic demand. Appl. Math. Modelling 33(6):2777–2790.CrossrefGoogle Scholar
  • Heiman A, McWilliams B, Zilberman D (2001) Demonstrations and money-back guarantees: Market mechanisms to reduce uncertainty. J. Bus. Res. 54(1):71–84.CrossrefGoogle Scholar
  • Heiman A, McWilliams B, Zhao J, Zilberman D (2002) Valuation and management of money-back guarantee options. J. Retailing 78(3):193–205.CrossrefGoogle Scholar
  • Hou J, Zeng AZ, Zhao L (2010) Coordination with a backup supplier through buy-back contract under supply disruption. Transportation Res. Part E: Logist. Transportation Rev. 46(6):881–895.CrossrefGoogle Scholar
  • Hsieh CC, Wu CH (2009) Coordinated decisions for substitutable products in a common retailer supply chain. Eur. J. Oper. Res. 196(1):273–288.CrossrefGoogle Scholar
  • Jeng SP, Huang LS, Chou YJ, Teng CI (2014) Do consumers perceive money-back guarantees as believable? The effects of money-back guarantee generosity, store name familiarity, and perceived price. Service Sci. 6(3):179–189.LinkGoogle Scholar
  • Lawton C (2008) The war on returns. Wall Street Journal (May 8), 1.Google Scholar
  • Lee CH, Rhee BD (2007) Channel coordination using product returns for a supply chain with stochastic salvage capacity. Eur. J. Oper. Res. 177(1):214–238.CrossrefGoogle Scholar
  • Lee CH, Rhee BD, Cheng TCE (2013) Quality uncertainty and quality-compensation contract for supply chain coordination. Eur. J. Oper. Res. 228(3):582–591.CrossrefGoogle Scholar
  • Liu J, Mantin B, Wang H (2014) Supply chain coordination with customer returns and refund-dependent demand. Internat. J. Production Econom. 148(February):81–89.CrossrefGoogle Scholar
  • McWilliams B, Gerstner E (2006) Offering low price guarantees to improve customer retention. J. Retailing 82(2):105–113.CrossrefGoogle Scholar
  • Moorthy S, Srinivasan K (1995) Signaling quality with a money-back guarantee: The role of transaction costs. Marketing Sci. 14(4):442–466.LinkGoogle Scholar
  • Mostard J, Teunter R (2006) The newsboy problem with resalable returns: A single period model and case study. Eur. J. Oper. Res. 169(1):81–96.CrossrefGoogle Scholar
  • Ohmura S, Matsuo H (2016) The effect of risk aversion on distribution channel contracts: Implications for return policies. Internat. J. Production Econom. 176(June):29–40.CrossrefGoogle Scholar
  • Pasternack BA (1985) Optimal pricing and returns policies for perishable commodities. Marketing Sci. 4(2):166–176.LinkGoogle Scholar
  • Posselt T, Gerstner E, Radic D (2008) Rating e-tailers’ money-back guarantees. J. Service Res. 10(3):207–219.CrossrefGoogle Scholar
  • Ruiz-Benitez R, Muriel A (2014) Consumer returns in a decentralized supply chain. Internat. J. Production Econom. 147(January):573–592.CrossrefGoogle Scholar
  • Ryu K, Yücesan E (2010) A fuzzy newsvendor approach to supply chain coordination. Eur. J. Oper. Res. 200(2):421–438.CrossrefGoogle Scholar
  • Shen B, Choi TM, Wang Y, Lo CKY (2013) The coordination of fashion supply chains with a risk-averse supplier under the markdown money policy. IEEE Trans. Systems, Man, Cybernetics: Systems 43(2):266–276.CrossrefGoogle Scholar
  • Shen Y, Willems SP (2012) Coordinating a channel with asymmetric cost information and the manufacturer’s optimality. Internat. J. Production Econom. 135(1):125–135.CrossrefGoogle Scholar
  • Stock J, Speh T, Shear H (2002) Many happy (product) returns. Harvard Bus. Rev. 80(7):16–17.Google Scholar
  • Su X (2009) Consumer returns policies and supply chain performance. Manufacturing Service Oper. Management 11(4):595–612.LinkGoogle Scholar
  • Suwelack T, Hogreve J, Hoyer WD (2011) Understanding money-back guarantees: Cognitive, affective, and behavioral outcomes. J. Retailing 87(4):462–478.CrossrefGoogle Scholar
  • Ülkü MA, Dailey LC, Yayla-Küllü HM (2013) Serving fraudulent consumers? The impact of return policies on retailer’s profitability. Service Sci. 5(4):296–309.LinkGoogle Scholar
  • Van den Poel D, Leunis J (1999) Consumer acceptance of the Internet as a channel of distribution. J. Bus. Res. 45(3):249–256.CrossrefGoogle Scholar
  • Yoo SH (2014) Product quality and return policy in a supply chain under risk aversion of a supplier. Internat. J. Production Econom. 154(August):146–155.CrossrefGoogle Scholar
  • Wood SL (2001) Remote purchase environments: The influence of return policy leniency on two-stage decision processes. J. Marketing Res. 38(2):157–169.CrossrefGoogle Scholar
  • Wu D (2013) Coordination of competing supply chains with newsvendor and buyback contract. Internat. J. Production Econom. 144(1):1–13.CrossrefGoogle Scholar
  • Xiao T, Shi K, Yang D (2010) Coordination of a supply chain with consumer return under demand uncertainty. Internat. J. Production Econom. 124(1):171–180.CrossrefGoogle Scholar
  • Xu L, Li Y, Govindan K, Xu X (2015) Consumer returns policies with endogenous deadline and supply chain coordination. Eur. J. Oper. Res. 242(1):88–99.CrossrefGoogle Scholar
  • Yue X, Raghunathan S (2007) The impacts of the full returns policy on a supply chain with information asymmetry. Eur. J. Oper. Res. 180(2):630–647.CrossrefGoogle Scholar
  • Zhang B, Lu S, Zhang D, Wen K (2014) Supply chain coordination based on a buyback contract under fuzzy random variable demand. Fuzzy Sets Systems 255(November):1–16.CrossrefGoogle Scholar
  • Zhao Y, Choi TM, Cheng TCE, Sethi SP, Wang S (2014) Buyback contracts with price-dependent demands: Effects of demand uncertainty. Eur. J. Oper. Res. 239(3):663–673.CrossrefGoogle Scholar
INFORMS site uses cookies to store information on your computer. Some are essential to make our site work; Others help us improve the user experience. By using this site, you consent to the placement of these cookies. Please read our Privacy Statement to learn more.