A Risk-free Perishable Item Returns Policy
Manufacturing & Service Operations Management
Supply Chain Coordination Under Channel Rebates with Sales Effort Effects
Management Science
Note: The Newsvendor Model with Endogenous Demand
Management Science
Closed-Loop Supply Chain Models with Product Remanufacturing
Management Science
A Series System with Returns: Stationary Analysis
Operations Research
Time Value of Commercial Product Returns
Management Science
Optimal Policy for a Multiechelon Inventory System with Remanufacturing
Operations Research
Intertemporal Pricing with Strategic Customer Behavior
Management Science
Strategic Capacity Rationing to Induce Early Purchases
Management Science
Manufacturing & Service Operations Management
Optimal Pricing of Seasonal Products in the Presence of Forward-Looking Consumers
Manufacturing & Service Operations Management
The Option Value of Returns: Theory and Empirical Evidence
Marketing Science
Optimal Selling Scheme for Heterogeneous Consumers with Uncertain Valuations
Mathematics of Operations Research
Advance Selling When Consumers Regret
Management Science
Real e-customer behavioural responses to free delivery and free returns
Electronic Commerce Research
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This paper develops a model of consumer returns policies. In our model, consumers face valuation uncertainty and realize their valuations only after purchase. There is also aggregate demand uncertainty, captured using the conventional newsvendor model. In this environment, consumers decide whether to purchase and then whether to return the product, whereas the seller sets the price, quantity, and refund amount. Using our model, we study the impact of full returns policies (e.g., using 100% money-back guarantees) and partial returns policies (e.g., when restocking fees are charged) on supply chain performance. Next, we demonstrate that consumer returns policies may distort incentives under common supply contracts (such as manufacturer buy-backs), and we propose strategies to coordinate the supply chain in the presence of consumer returns. Finally, we explore several extensions and demonstrate the robustness of our findings.