Optimization of Supply Chain Strategy for Online Extended Warranty Services Considering Old-for-new Trade-in
With the continuous market expansion of the digital and e-commerce economy and under the old-for-new trade-in policy,it is urgently necessary to study the optimal supply chain strategy for enterpris-es adopting the online"old-for-new trade-in+extended warranty service"business mode.To this end,in this paper,we constructed an online and offline dual-channel supply chain which provides online extended warranty and old-for-new trade-in services.Considering the two-stage Stackelberg game between the manufacturers and the retailers,we analyzed the online extended warranty service supply chain strategy un-der the old-for-new trade-in policy in centralized and decentralized decision-making scenarios and then had a simulation analysis to clarify the decision-making mechanism of the online extended warranty service supply chain under the old-for-new trade-in policy.The result obtained showed that:(1)In terms of supply chain pricing,the wholesale price,direct retail price and online retail price of the product are all positively correlated with the degree of market competi-tion;the wholesale price,extended warranty price and trade-in price difference are positively correlated with the share of the product in the basic online market,while the direct retail price is negatively correlated with it;the extended warranty price and trade-in price difference are positively correlated with the extended warranty period,while the online retail price is negatively correlated with it.(2)In terms of supply chain demand,the online demand,extended warranty service demand,and trade-in demand of the product are positively correlated with the share of the product in the basic online market and the extended warranty service period.(3)In terms of supply chain profit,as the share of the product in the basic online market increases,the di-rect retail profit shows a downward trend,while the online retail profit stays on a continuous upward curve.The total profit of the supply chain is higher under centralized decision-making;and as the extended warran-ty service period is extended,the total profit of the supply chain is higher under centralized decision-making.The research conclusions can provide the following reference for companies in the extended warranty ser-vice supply chain:(1)The manufacturer(or direct retailer)should appropriately lower the retail price of a product to attract consumers to buy offline,and at the same time appropriately increase the online retail price,online extended warranty service price,and trade-in difference price to alleviate the conflict and com-petition between the online and offline sales channels;(2)The manufacturer(or direct retailer)or online re-tailer should build a centralized online extended warranty service supply chain to seek higher total supply chain profit,while also cultivating market demand for their products,extended warranty services,and old-for-new trade-in services.
old-for-new trade-inonline extended warranty servicesupply chain strategyStackelberg game