Volume 20 No 20 (2022)
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Pricing and determining the warranty period in a reverse supply chain model of a smartphone sales market
Morteza Moaven Hashemi,Ata Allah Taleizadeh,oannis Konstantaras,Fariborz Jolai
Abstract
In the present research a supply chain model, including three parties such as manufacturers, sellers and restorer, is presented. Two markets are considered for the supply of the crops in this chain. In the primary market, new crops are offered while in the secondary market, returned items that are used after recovery, are offered. Four models with different supply chain structures are then introduced simultaneously, but separately according to the combinations of the processes in both markets. One of the main issues in this research is to establish a guarantee for both markets. In other words, both new and refurbished crops have their own unique warranty. A comparison between the four models shows that Supply chain members can simultaneously differentiate the final selling price of new and refurbished crops. In particular, integration of manufacturers in the sales process is achieved when the chain members, in addition to considering profit as the main factor of presence in the market to increase competitiveness and attract higher consumers, use consumer satisfaction factors such as warranty at the right time. This study shows that the optimal guarantee, despite of the increasing each part of the supply chain's cost, increases the profit of the chain.
Keywords
Pricing; supply chain; warranty; product recovery
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