<p>Each manufacturer in a competitive market attempts to raise market demand by implementing various policies. Product insurance and warranty policies are more effective in addressing market demand for electronic goods. This work investigates the pricing strategies of green products with warranty and product insurance coverage based on consumer perceptions of the green level, warranty period and product insurance policies for both green and non-green electronic goods in a manufacturer-retailer supply chain coordination model. Also, it is considered that the market demand for the product directly depends on the selling price, warranty period, green level and insurance coverage duration. Members of the supply chain are eager to promote both green and non-green products at a time in a single market. In order to optimize profits for both manufacturer and retailer, this study attempts to identify the optimal values for the product’s selling price, warranty period, green level, and coverage time of product insurance. The manufacturer-retailer profit maximization problems are constructed and solved by different optimization techniques, viz., centralized approach and decentralized (leader-follower) approach. Two numerical examples are used to validate the proposed models and derive the closed-form solutions for the decision variables. Finally, the post-optimality analyses are examined to investigate the effects of changes in important model parameters on the optimal policy.</p>

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Pricing strategies of the green product with warranty and product insurance based on the consumer’s opinion in a supply chain model

  • Prasanta Kumar Ghosh,
  • Amalesh Kumar Manna,
  • Jayanta Kumar Dey,
  • Samarjit Kar

摘要

Each manufacturer in a competitive market attempts to raise market demand by implementing various policies. Product insurance and warranty policies are more effective in addressing market demand for electronic goods. This work investigates the pricing strategies of green products with warranty and product insurance coverage based on consumer perceptions of the green level, warranty period and product insurance policies for both green and non-green electronic goods in a manufacturer-retailer supply chain coordination model. Also, it is considered that the market demand for the product directly depends on the selling price, warranty period, green level and insurance coverage duration. Members of the supply chain are eager to promote both green and non-green products at a time in a single market. In order to optimize profits for both manufacturer and retailer, this study attempts to identify the optimal values for the product’s selling price, warranty period, green level, and coverage time of product insurance. The manufacturer-retailer profit maximization problems are constructed and solved by different optimization techniques, viz., centralized approach and decentralized (leader-follower) approach. Two numerical examples are used to validate the proposed models and derive the closed-form solutions for the decision variables. Finally, the post-optimality analyses are examined to investigate the effects of changes in important model parameters on the optimal policy.