A Study on Supply Chain Trade-in Decision Making of Retailer with Considering New and Old Customers

Hong-yuan LI

Abstract


From the perspective of supply chain, the decision making of retailer which carries out Trade-in is studied. The impact of market segmentation and depreciation of old product on decision making and supply chain efficiency are analyzed. It is found that product price and supply chain efficiencies are affected by the old customer proportion, the old product loss degree and offset price by returning old goods. The offset price in the trade-in model can attract more old customers for the retailer, but retailer’s profit is reduced as the old customer proportion of the market increases. When the old customer proportion increases, in order to win the market, retailer will reduce the price to attract more old customers. When the depreciation of old product increases, retailer will raise price to take more profit. The conclusion of this paper has certain theoretical significance for enterprises to implement the trade-in policy in the supply chain environment.

Keywords


Supply chain; Trade-in, Retailer, Decision Making; Customer


DOI
10.12783/dtem/eced2017/9917

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