David John Robb

We study the quality disclosure strategy of a manufacturer/retailer in a supply chain with consumer returns for new products. In particular, we explicitly model the effect of quality disclosure on the reduction of the returns rate. We identify the condition in which the manufacturer/retailer should reveal product quality in the presence of consumer returns. We find that (1) the manufacturer/retailer has an incentive to choose quality disclosure strategy when the disclosure quality is above a lower bound; (2) if the returns rate of new products is low, the retailer‐disclosure scenario leads to reveal more quality information than that of the manufacturer‐disclosure scenario; otherwise, the manufacturer‐disclosure scenario leads to reveal more quality information; and (3) the manufacturer prefers to reveal a higher level of product quality in the supply chain with a higher refund amount or a lower salvage value per unit of returned product.

Stored value cards (SVCs) are ubiquitous, but little investigation has been undertaken into actual and desired replenishment behaviour, or the economic impact of card consolidation on consumers and service providers (such as retailers and public transit authorities). We develop classic and joint replenishment economic order quantity models for reloadable SVCs where the card value may be lost, for example, through theft or breakage. We extend the models to consider potential benefits of discounts, and providing refunds upon card loss (via external recording of card value). We also show how SVC consolidation and service expansion decisions can benefit consumers and service providers. As a case study, we utilise the Beijing subway system ‘YiKaTong’ card to demonstrate cost optimisation at the consumer and enterprise level. Direct observations of recharging and a survey suggest that commuters take the likelihood of card loss into account and are risk averse. The results of the work help to explain and predict consumer recharge behaviour, and should assist service providers evaluating decisions relating to their market scope, technology, pricing, and service capacity. public transport; inventory control; Joint replenishment; card consolidation; personal operational research; purchasing behaviour; implied value of time Data distribution of recharge point and recharge amount (292 recharges). Main effects of problem parameters on the optimum consumer recharge value, q*.Note: We use d=1200 CNY/year, τ=2.0 minutes, v=1.0 CNY/minute, and κ=1.0/year, for which . The graphs show the impact on q* of varying each of the four parameters in turn. Already a subscriber? Log in now or Register for online access. Members of the Operational Research Society receive access to Journal of the Operational Research Society as part of their membership. Access is available through the Operational Research Society web site.

In this article, we investigate the ( R , S ) periodic review, order‐up‐to level inventory control system with stochastic demand and variable leadtimes. Variable leadtimes can lead to order crossover, in which some orders arrive out of sequence. Most theoretical studies of order‐up‐to inventory systems under variable leadtimes assume that crossovers do not occur and, in so doing, overestimate the standard deviation of the realized leadtime distribution and prescribe policies that can inflate inventory costs. We develop a new analytic model of the expected costs associated with this system, making use of a novel approximation of the realized (reduced) leadtime standard deviation resulting from order crossovers. Extensive experimentation through simulation shows that our model closely approximates the true expected cost and can be used to find values of R and S that provide an expected cost close to the minimum cost. Taking account of, as opposed to ignoring, crossovers leads, on average, to substantial improvements in accuracy and significant cost reductions. Our results are particularly useful for managers seeking to reduce inventory costs in supply chains with variable leadtimes.