Pricing,Warranty And Quality Decisions Under Different Supply Chain Structures

With the rapid development of modern technology and the influence of economic globalization,market competition is more intense and complex,and the competition strategy between the enterprise is also more diverse,it from a single price competition has gradually changed iinto price,after-sale service,product quality and service quality and other comprehensive competition.In the modern commodity trading,the level of product quality not only affects the consumer's purchase decision,but also affects the production cost and the warranty cost.For consumers,it is difficult to directly determine the quality of the product without the use of the product,so the length of the warranty period can be used as a signal to reflect the quality of the product.However,the warranty period is too short,will reduce the market demand,the warranty period is too long,it will increase the warranty costs.So for the goal is to maximize the profits of manufacturers and retailers,how to get the price,warranty and product quality level of the equilibrium point is particularly important.This paper studies different supply chain structures,based on the consideration of price,warranty period and product quality level,how to maximize the profits of manufacturers and retailers.Firstly,in a simple two-echelon supply chain of a manufacturer and a retailer,the main consideration is the two model,the centralized decision model and the manufacturer as the Stackelberg leader model,and some conclusions are obtained:for consumers,the centralized decision model brings more benefits,and the decision variable price,warranty period and quality level are proportional under the two models,in addition,when the price sensitivity of consumers increases,the supply chain members can stimulate consumers'purchase intention by reducing price,and shorten the warranty period and reduce the quality level to make up for the losses caused by price reduction.Secondly,in the two-echelon supply chain of two manufacturers and one retailer,we consider the situations of the two manufactures provide competitive products or complementary products.Then.in each situation,we analysis three models,the centralized decision-making model,and when the two manufactures as Stackelberg leaders whether they cooperate,some conclusions are obtained:in the case of producing competitive products,the price of the three models is proportional to it's warranty period and the quality level,and the price of the competing products,but inversely proportional to the warranty period and the quality level of the competing products,and for any one of the manufacturers,when the consumer price sensitivity is very high,two manufacturers cooperation can provide a longer warranty period,higher quality products,on the other hand,two manufacturers non-cooperation can bring more benefits to consumers;in the case of the production of complementary products,the three models of product prices and their own and complementary product warranty period and quality level is proportional,but inversely proportional to the price of complementary products,and when consumers to product or complementary product warranty sensitivity gradually increased,manufacturers can take to raise prices to ensure profits,increase the warranty period to attract consumers and improve the level of quality to reduce warranty costs;finally,in these two cases,both centralized decision model can give consumers more benefitsThis paper considers price,warranty and product quality level decision problems in the two-echelon supply chain structures.The background is more realistic and the research has certain practical reference value to the supply chain participants how to develop a more reasonable price strategy,warranty services and how to control the quality of products.