SC Coordination Mechanism Considering The Influence Of Warranty Service On Product Demand

After sales service means offering maintaining,repair or replace service for the product sold if failures occur within warranty period.After sales service ensures customer’s interest and avoids customer’s right from being hurt.We research on the supply chain with one manufacturer and one retailer in a single period.We study the supply chain coordination mechanism and warranty period length setting strategy considering the influence of after-sales service’s on product demand,mainly for the influence of service level and warranty period length.Nowadays the after-sales market is a hot research and economic area,and what we concentrate on in this thesis will also attract a lot of attention.We firstly start with after-sales service’s influence on product demand in the market,then we research into several decision modes as follows,centralized decision mode,formal decentralized decision mode,manufacture pricing incentive decision mode and retailer cost sharing punishing decision mode.We make comparison for these modes and find out which one will come up with the highest supply chain total profit and after-sales service level.Furthermore,we discuss the possibility that retailer would cheat in the warranty data.We research on manufacturer’s inspect strategy and find out the best choice that will bring the highest profit for manufacturer.All of that will help our supply chain members to make better economic decision while setting supply chain contract policy.Meanwhile,we find that warranty period length will also affect the product demand.We consider warranty period length’s influence on product demand and its decreasing pattern with product’s time-to-market changing.We apply free-replacement policy and assume that product’s failure rate follow Weibull distribution.We use learning curve to describe warranty period length’s influence decreasing pattern on product demand.We use optimization theory to find out the optimal decision strategy and do numerical research.We find that manufacturer can get highest profit by setting alternative warranty period length based on products’ time-to –market.