Production Chain Length and PPI-CPI Divergence:Analysis Based on the Global Input-output Price Model

Productivity and international energy price shocks are reflected in PPI and CPI via industrial chains.China’s in-depth participation into the global value chains has increasingly lengthened its industrial production chains.The question is how the changing length of production chains will affect CPI and PPI,as well as CPI-PPI correlation?By constructing a global input-output price model,this paper offers a theoretical discussion on the impact of production chain length on the CPI-PPI divergence.Our findings suggest that the price shock of international bulk commodities has a greater impact on China’s PPI than that on CPI.The effects on both China’s PPI and CPI estimated by using the single-country input-output model are higher than the results estimated with the global input-output model.However,the difference between CPI and PPI variations estimated with the global input-output model is greater than the result estimated with the single-country input-output model,which supports the view that the lengthening of production chains,especially international production chains,leads to a divergence between CPI and PPI.Empirical results based on cross-national panel data also suggest that the lengthening of production chains has reduced the CPI-PPI correlation for countries,i.e.the lengthening of production chains has increased the PPI-CPI divergence.That is to say,policymakers should target not just CPI in maintaining price stability,but instead focus on the stability of both PPI and CPI.Efforts can be made to proactively adjust the price index system,and formulate the industrial chain price index.

Optimal pricing and production decisions in a supply chain with e-marketplace

The concept of the e-marketplace is introduced.Considering a supply chain with a single manufacturer who sells a single item in an e-marketplace,an analytical model for the use of the e-marketplace in a supply chain is provided.Assuming the market demand is stochastic and price-dependent,the conditions under which the manufacturer and the e-marketplace owner share the market in equilibrium is developed.The existence and uniqueness of the optimal selling price,quantity and transaction percentage are proved.An integrated supply chain is put forward,and then the efficiency of supply chain coordination is studied by comparing the integrated supply chain with the decentralized supply chain.To gain further insights on the theoretical models,extensive simulations are then carried out.

Coordinating pricing strategies in supply chain under asymmetric information and disruptions

The coordinating pricing strategies with asymmetric cost information under disruptions are investigated in a one-supplier-one-retailer supply chain system.While the retailer's cost structure is asymmetric information,supply chain pricing contract models(a wholesale price contract and an all-unit quantity discount contract)under asymmetric information are proposed by employing the principal-agent principle in a regular scenario.When the retailer's cost distribution is fluctuated by disruptions,we obtain the optimal emergency strategies of the supply chain under asymmetric information by considering deviation costs and show how to effectively handle the cost uncertainty.Using numerical methods,impacts of cost disruptions on the optimal wholesale price,the retailer price,the order quantity and the expected profits of the retailer,the supplier,as well as the total system are analyzed.It is found that the all-unit quantity discount policy can obtain better performance than the wholesale pricing policy.

E-Supply Chain Incentive and Coordination Based on Revenue Sharing Contract

This paper took the buyer-biased electronic market as an example, where multiple suppliers selling short-life-cycle products are bidding for an order from a powerful buyer with stochastic customer demand. It used a single period newsvendor model to analyze the decision of supplied and buyers to do or not do business online. The results suggest that lack of Incentive is the key factor of B2B electronic markets failure. At the same time, it designed a revenue sharing contract to coordinate the E-supply chain in order to prevent failure of E-market.

Altruism and Pricing Strategy in Dual-Channel Supply Chains

With the development of behavioral operational management, human behavior such as altruism, fairness and trust has received considerable attention. This paper studies the effect of altruism on retailer’s and manufacturer’s pricing strategy in two classic dual-channel supply chains by presenting Stackelberg game models. The analysis shows that the player’s altruism preference strongly affects their pricing strategies. The more altruistic one player is, the more profits the other player obtains. Moreover, the effect of manufacturer’s altruistic preference is larger than that of retailer’s. In addition, online price is always lower than offline price in dual-channel supply chain, which still holds true considering altruism. The results also reveal that the product web-fit has significant effect on the player’s optimal pricing strategies. The more compatible with online market the product is, the lower the retail price is set, and the more profit the manufacturer obtains whereas the less the retailer gets.

Vertical Price Transmission in the China's Layer Industry Chain:an Application of FDL Approach

This paper examines the vertical price relationship between upstream and downstream products in China＇s layer industry chain by estimating elasticity coefficients of the price transmission. We use cointegration tests, error correction models and finite distributed lag models to analyze vertical price shifts between corn, layer feed, egg-laying chicken and egg prices. With monthly data from 1994 to 2010, our results show that various prices in China＇s layer industry chain are well integrated. In addition, our results indicate that both long-run and short-run price relationships between upstream and downstream products in layer industry chain exist and the long-run equilibrium, to a certain extent, may eliminate the short-run dynamics price deviation. We also found that the influence of corn and feed prices on egg prices is still more remarkable than egg-laying chicken prices. Our findings imply that governments should pay more attention to corn and layer feed prices in order to stabilize egg prices under the conditions of market integration.

Stability analysis of intermediate product dynamic price in two-level supply chain

In two cases that upstream and downstream firms have the decision power of intermediate product prices in a two-level supply chain,the dynamic pricing mechanism of intermediate products is studied.When a party who has the decision power of pricing gives prices of intermediate products,the other side will give the supply or demand quantity of intermediate products which maximizes its own profits,then the party who decides price has two pricing strategies.One uses the matching price which meets the other party's demand or supply needs according to the prices of intermediate products in the next cycle.The other uses the convex combinations of the current price and the matching price which satisfies the other party's demand or supply as the price of the intermediate product in the next cycle.No matter which side has the decision power of intermediate product prices between upstream and downstream firms,results show that in the first pricing strategy,only in one case of the pricing of intermediate products stable;but in the second pricing strategy,both of the cases of pricing of intermediate products are stable in a certain field of combined parameters.

Game Analysis and Countermeasures on Increasing Prices of Agricultural Products under Triple Supply Chain

From the perspective of supply chain of agricultural products,by establishing Stackelberg game model based on triple supply chain,this paper researches the price formation and profit distribution mechanism of agricultural products under circumstance of non-cooperation and cooperation.The results show the main factors responsible for the hiking of prices of agricultural products as follows:the cost of agricultural products climbs incessantly;the circulation cost hovers at high level;the factor inputs of agricultural products are short;inflation pressure is incessantly mounting;the profit distribution of supply chain is irrational.Finally,corresponding countermeasures are put forward.

Industrial transmission effect of international metal price shocks in perspective of industry chain

Based on a new perspective of industry chain and selecting monthly data from February2006to December2015,this paper chooses eight Chinese industrial sectors to construct a SVAR model reflecting internal relationships among metal chains,analyzes the direct effects and indirect effects of international metal prices on output of various links in metal chains,then it investigates the main transmission path of international metal price shocks through decomposing the inflation pressure sources in metal chains.The results show that international metal price shocks not only affect industrial output in a direct way,but also indirectly affect the growth of output through the increased pressure on industrial inflation and then triggering a tightening of monetary policy implementation.Affected by factors such as the lack of market demand and the price transmission mechanism blocking,the direct effects of international metal price shocks mainly impact the upstream and midstream industry,while the downstream industry is mainly affected by indirect effects;in addition,the international metal price shocks have spillover effects on the industrial inflation,and transmit along the industry chain from upstream to downstream,and their strength weakens in sequence.

Price Conduction Mechanism of China's Wheat Industry Chain Based on VECM

With the aid of the VECM( vector error correction model),this paper studied dynamic effect of wheat price and flour price conduction mechanism in the wheat industry chain. Study results indicate that in a long term,wheat price and flour price have equilibrium relationship. Through threshold co-integration test,it found that there is no threshold co-integration relationship between wheat price and flour price.This can be adjusted using the linear error correction mode. In a short term,the wheat price and flour price have Granger causality relationship. When the price deviates from equilibrium state,the flour price can be adjusted and regressed to equilibrium state,but the speed of wheat price regressing to equilibrium state is slow. Finally,the impulse response function analysis indicates that fluctuation of the wheat price can bring huge and sustained impact to wheat and flour market.

Supplier pricing based on threshold cointegration in agri-supply chain

Aiming atthe pricing of primary agricultural products for the large-scale suppliers and the wholesalers in agri-supply chain management, an approach for the large-scale supplier pricing is presented based on the threshold cointegration method of wholesale prices online including the GBand-TAR modified Band-TAR model. Our empirical work shows that it is more appropriate for a large-scale supplier pricing with his wholesalers based on the threshold cointegration method than the conventional linear cointegration method in spatially separate markets in an agri-supply chain of soybean in China in short time. Firstly, the three pairs of prices in spatially separate markets are of long-run equilibrium and threshold cointegration. The forecast wst shows that the threshold cointegration approach is superior to the conventional linear cointegration approach in short time. Secondly, there are two thresholds of GBand-TAR in which the threshold parameters represent relative transaction costs. Larger thresholds or wider neutral band corresponds to the greater distance between markets. Thirdly, the estimation of M-TAR shows that the large-scale supplier is more sensitive to increase of wholesaler prices than decrease of wholesaler prices. The supplier can price on the forecast of market price by the threshold ECM including the GBand-TAR if the equilibrium error of threshold lag is not in the interval of thresholds in which there is not profitable trading opportunities for the supplier.

Dynamic Pricing Model for the Operation of Closed-Loop Supply Chain System

A class of closed-loop supply chain system consisting of one manufacturer and one supplier is designed, in which re-distribution, remanufacturing and reuse are considered synthetically. The manufacturer is in charge of recollecting and re-disposal the used products. Demands of ultimate products and collecting quantity of used products are described as the function of prices and reference prices. A non-linear dynamic pricing model for this closed-loop supply chain is established. A numerical example is designed, and the results of this example verified the model’s validity to price for the operation of closed-loop supply chain system.

Study on pricing decision of new energy vehicle supply chain under Baa S model

Based on the Baa S model,a new energy vehicle supply chain game model composed of battery-swapping operators and vehicle manufacturers was constructed,and the corresponding optimal decisions of the supply chain members were obtained.The influence of related parameters on the equilibrium results was analyzed,and the Matlab was used for example analysis.The results show that:(1)The increase in the average consumer commuter mileage over the life of the vehicle can promote the increase in the demand for new energy vehicles and the profits of the supply chain members,which has a driving effect on the development of the battery swap industry.(2)Consumer sensitivity coefficient to the price of battery swap has a negative impact on battery-swapping price,new energy vehicle price,market demand for new energy vehicles,and profits of vehicle manufacturers and battery-swapping operators.

Analysis on the Effect of Asymmetric Information on Product Supply Chain and Pricing

Along with the vigorous development of the markel economy, the transactions in the market are also increasingly frequent. In all kinds of market transactions, there are more or less inIbrmation asynunetry phenomena. Asynmaetric information makes supply chain unable to give a real reaction to the relationship between market supply and demand, and the personnel in the channels of supply chain are unable to make the optimal pricing, so that the overall profits are affected. Therefore, asymmetric information should be controlled within the normal range, for the purpose of ensuring the normal operation and healthy development of the market transactions.

Research on Multichannel Supply Chain Pricing Under Different Dominance

In a multichannel supply chain comprising of dual-channel retailers with both physical and online channels as well as single-channel e-tailers with online channels,a multichannel demand model for e-commerce is constructed based on customer channel preferences,and a Stackerberg game model with price competition dominated by dual-channel retailers and single-channel e-tailers as well as a Bertrand game model with equal rights are established to analyze the impact of different channel rights structures on the price,demand,and profit of the two retailers.The results show that the single-channel e-tailer under the dual-channel retailer-dominated game has the highest profit,and the dual-channel retailer xmder the single-channel e-tailer-dominated game has the highest profit;thus,both retailers should accept the other's dominant channel rights for profit maximization.

Rethinking counterfeit medical supply chains:A critical review of the current literature

The medical device and pharmaceutical industries include a range of drugs,machines,instruments,and apparatuses used to prevent,diagnose,treat disease and illness,or aid in rehabilitation for patients,and are expected to grow substantially in the coming years.However,they are often targets of criminal organizations who manufacture and profit from fraudulent products,infiltrating the market with counterfeit medical supply chains.In this paper,we discuss and analyze the extent and nature of this problem and make suggestions for mitigation and prevention of this worldwide challenge.Ultimately,we argue that a holistic approach is essential to addressing this problem,including the creation and dissemination of reliable and good quality data,developing healthcare systems to be more robust,establishing/enhancing intra‐and international cooperation around this issue,and employing effective technological solutions,such as digital tracing.

Effects of cooperative mechanisms in mobile commerce value chain

In order to analyze the effects of different cooperative mechanisms between a mobile device manufacturer and a mobile network operator （ MNO ）, a Stackelberg structure is constructed. The manufacturer acts as a leader, while the MNO acts as a follower, i. e., a traditional retailer. Three cooperative mechanisms are considered： the manufacturer does not invest in developing the propriety function and software to support the infrastructure capacity of the MNO; the manufacturer invests in the development; the MNO offers a subsidy to encourage the manufacturer to invest in development. The results reveal that investing in the development can increase the profits of both the manufacturer and the MNO. Furthermore, if the MNO shares certain investment costs with the manufacturer, the MNO may charge higher prices of mobile connection services and mobile value-added services, and the profits of the two players may be enhanced.

DISRUPTION MANAGEMENT FOR SUPPLY CHAIN COORDINATION WITH EXPONENTIAL DEMAND FUNCTION

The coordination problem of a supply chain comprising one supplier and one retailer under market demand disruption is studied in this article. A novel exponential demand function is adopted, and the penalty cost is introduced explicitly to capture the deviation production cost caused by the market demand disruption. The optimal strategies are obtained for different disruption scale under the centralized mode. For the decentralized mode, it is proved that the supply chain can be fully coordinated by adjusting the price discount policy appropriately when disruption occurs. Furthermore, the authors point out that similar results can be established for more general demand functions that represent different market circumstances if certain assumptions are satisfied.

Price Transmission in China's Swine Industry with an Application of MCM

The paper studies the relationship, adjustment ability, path, efficiency and intensity of price transmission in the swine industry chain in China, which consists of the prices of corn, compound feed for fattening pig, piglet, pig and pork. Monthly prices covering a period of 18 yr （1994-2011） are analyzed using a Market-Chain Cooperated Model （MCM）. The empirical results show that there exists a stable long-term cointegration and short-term dynamic relationship in the price system. First, the adjustment speed of each price series is very slow and the transmission path is top-down and one-way significantly. Second, the price from upstream to downstream lags about 2 mort, while there is no lag in price transmission from midstream to downstream. Third, in terms of price transmission intensity, the price of pig impacted greatly on pork price, not only in the current period but also through the whole period. Besides, the price of corn has the largest lagged effects on pork price. According to the above empirical results, we suggest that government should strengthen monitoring and early warning of the swine industry chain, especially the upstream and midstream, attach great importance to the timely adjustment of feed prices and perfect the measures of price subsidy.

Who Benefits from Altruism in Supply Chain Management?

The significant effect of social preference on strategic behavior has been convinced by recent research. Along this stream of research, we study firms’ altruistic incentives in supply chains since the selfish rationality can’t deal with economic behaviors. We show that the performance of the supply chain in consideration of altruism is between those of scenarios under decentralization and under integration. We further shows that a manufacturer, as a leader, should find an egoistic retailer, while a retailer, as a follower, should find a manufacturer with altruistic liability, to form a good chain.