供应链中新产品的价格决策英文教学课件PPT.ppt

1 Price Decisions for New Product with and without Subsidy 2 Introduction Literature review Price decisions Numerical Example Conclusion Outline 3 Introduction In order to stimulate private spending and curb pollution, the Chinese government has decided to offer financial subsidy to carry out auto replacement and home-appliance replacement from June 1(2009) to May 31(2010). For the home-appliance replacement, the consumer’s consumption willingness is very strong by the financial subsidy. As a result, the new product demand increases and the manufacturer can get more profit. 4 Because the financial subsidy can be offered until May 31(2010), the manufacturer must face the following problems: if the government stops to offer the financial subsidy, whether to continue the home-appliance replacement or not? If continue to carry out the home-appliance replacement, the manufacturer should give the payment to the consumer who replace the new product with an old one. In this case, how to make the price decisions? What’s the key factor which affects the home-appliance replacement? 5 Motivated by these questions, in this paper, we will give the price decisions for the manufacturer and the retailer in three periods: in the first period, there is no home-appliance replacement and without the financial subsidy; in the second period, the home-appliance replacement is begun and with the financial subsidy; and in the third period, the home-appliance replacement is continued and without the financial subsidy. We will analyze the price decisions and illustrate the optimal results by a numerical example. 6 literature R. Saibal, B. Tamer, A. Necati, “Optimal prices and trade-in rebates for durable, remanufacturable products,” Manufacturing Service Operations Management, vol. 7, No. 3, 2005,pp: 208-228. Saibal et al studied the optimal pricing/trade-in strategies for durable, remanufacturable products. The model they gave