Design of Extended Warranties in Supply Chains

Topics:
Logistics Planning
Tags:
Enterprise Software,
Manufacturer,
Manufacturing,
Retail,
Retail Company,
Software,
Supply Chain,
Supply Chain Management (SCM),
University Of Illinois
Source:
University of Illinois

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Overview: Consider a supply chain involving an independent retailer and an independent manufacturer. The manufacturer produces a single product and sells it exclusively through the retailer. Using this supply chain framework, the authors develop a game theoretic model to study two commonly observed practices of selling extended warranties: the manufacturer offers the extended warranty directly to the end consumer, and the retailer selling the product offers extended warranty. This paper explains two decentralized systems, compare and contrast the two decentralized models with a centralized system and also explains different causes of inefficiencies in each of the two decentralized models.

(Is this item miscategorized? Does it need more tags? Let us know.)

Format: PDF | Size: 222KB | Date: Sep 2005 | Pages: 35

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