A Research on the Return Policy without Reason in Supply Chain Based on Consumer Status Quo Bias

Abstract

Abstract: In this paper, the issue of the return policy without reason (RPWR) in a supply chain is discussed and, for the first time, consumer status quo bias is taken into account. The supply chain concerned is composed of a manufacturer and a retailer and there is a contract of buyback or salesrebate between the manufacture and the retailer. The objective is to pursue an optimal RPWR for both the supply chain and its members. A mathematical model is developed for the problem. With the model, the optimal refund for both the supply chain and the retailer under different contracts is found. Also, the double marginal utility between the retailer and supply chain is analyzed. It is found that contradictory phenomena in some contracts can be eliminated by adjusting the contractual parameters so as to coordinate the supply chain.

Key words: consumer behavior, status quo bias, return policy without reason, supply chain

Jiang Hong, Qi Ershi, Yang Daojian, Huo Yanfang. A Research on the Return Policy without Reason in Supply Chain Based on Consumer Status Quo Bias[J]. Industrial Engineering Journal , 2012, 15(1): 33-38.

References

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