Faculty Publications

Now showing 1 - 3 of 3

Retailing and pricing decisions in a three-tier fabless semiconductor supply chain with stochastic consumption rate and channel power structures under sustainability measures
(Taylor and Francis Ltd., 2024) Raju, S.; Tm, R.; Kumar, S.P.; Taleizadeh, A.A.
This study investigates the trade-off between sustainability measures and pricing strategies within a three-tier fabless semiconductor supply chain. We examine diverse configurations of channel power to identify the optimal power structure when integrating sustainability measures into the semiconductor foundry. The Stackelberg game, Vertical Nash game, and Mean-Variance analysis are employed to model the complex dynamics among channel partners. The findings indicate that for a specific threshold limit of manufacturing and sustainability costs, implementing sustainability measures not only increases the optimal price for foundry but also enhances the margin and sales volume for the fabless company, leading to improved profits for all chain partners. Examining channel power structures reveals the threshold limit of sustainability cost which maximise the profit for the channel leader and the channel follower. Additionally, lower price elasticity favours maximum profits under channel leadership, whereas higher price elasticity values result in higher optimal profits when both partners share comparable channel power. The study also identifies the significant influence of partners’ risk aversion on overall profitability and offers valuable insights for practicing managers in the fabless supply chain, providing guidance on optimising pricing strategies, navigating channel power dynamics, considering price elasticity, and managing risk aversion to enhance overall profitability. © 2024 Informa UK Limited, trading as Taylor & Francis Group.
Impact of wholesale price discrimination by the manufacturer on the profit of supply chain members
(Emerald Group Holdings Ltd., 2022) Tm, R.; Mahanty, B.
Purpose: The purpose of this paper is to investigate the impact of wholesale price discrimination by a manufacturer in a retailer–e-tailer dual-channel supply chain for different product categories based on their online channel preference. Design/methodology/approach: This paper considers a dual-channel supply chain comprising of a retailer and an e-tailer engaged in competition. Game-theoretic models are developed to model the competition between the retailer and e-tailer and to derive their optimal price, optimal order quantity and optimal profit under (1) equal wholesale price strategy and (2) discriminatory wholesale price strategy. Further, a numerical example was employed to quantify the results and to capture the variation with respect to online channel preference of the product. Findings: It is beneficial for the manufacturer to adopt a discriminatory wholesale price strategy for products having both high online channel preference and low online channel preference. However, equal wholesale price strategy is beneficial for the e-tailer and the retailer in the case of products having high online channel preference and in the case of products having low online channel preference, respectively. Practical implications: The study helps the manufacturers to maximize their profit by adopting the right wholesale price strategy considering the online channel preference of the product when the manufacturers are supplying to heterogeneous retailers. Originality/value: There is scant literature on the wholesale price strategy of the manufacturer considering the heterogeneous downstream retailers. This paper contributes the literature by bridging this gap. In addition, the study establishes a link between the wholesale price strategy and online channel preference of the product. © 2020, Emerald Publishing Limited.
Do wholesale pricing strategies matter during asymmetric disruptions? A game theoretic analysis
(Emerald Publishing, 2024) Raju, S.; Tm, R.; S, P.K.; Jacob, J.
Purpose: In most economies, there are rules from the market regulators or government to sell at an equal wholesale price (EWP). But when one upstream channel is facing a negative demand disruption and another positive, EWP can create extra pressure on the disadvantageous supply chain partner, which faces negative disruption. The purpose of this study is to analyse the impact of EWP and the scope of the discriminatory wholesale price (DWP) during disruptions. Design/methodology/approach: For the study, the authors used a dual-channel supply chain consisting of a manufacturer, online retailer (OR) and traditional brick-and-mortar (BM) retailer. Stackelberg game is used to model the interaction between the upstream and downstream channel partners, and the horizontal Nash game to analyse the interaction within downstream channel partners. For modelling asymmetric disruption, the authors took instances from the lock-down and post-lock-down periods of the COVID-19 pandemic, where consumers flow from BM retailer to OR store. Findings: By analysing the disruption period, the authors found that this asymmetric disruption is detrimental to the BM channel, favourable to OR and has no impact on the manufacturer. But with DWP, the authors found that the profit of the BM channel and manufacturer can be increased during disruption. Though the profit of the OR decreased, it was found to be higher than in the pre-disruption period. Under DWP, the consumer surplus increased during disruption, making it favourable for the customers also. Thus, DWP can aid in creating a win-win strategy for all the supply chain partners during asymmetric disruption. Later as an extension to the study, the authors analysed the impact of the consumer transfer factor and found that it plays a crucial role in the optimal decisions of the channel partner during DWP. Originality/value: Very scant literature analyses the intersection of DWP and disruptions. To the best of the authors’ knowledge, this study, for the first time uses DWP as a tool to help the disadvantageous supply chain partner during asymmetric disruptions. The study findings will assist the government, market regulators and manufacturers in revamping the wholesale pricing policies and strategies to help the disadvantageous supply chain partner during asymmetric disruption. © 2023, Emerald Publishing Limited.

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