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    Title: Relative Effect of a Returns and a No-Returns Policy on the Unit Profit of Manufacturers under Continuous Demand Uncertainty
    Authors: Chang, Shu-hui;Pao, Shih-heng
    Contributors: 淡江大學國際貿易學系暨國際企業研究所
    Date: 2007-06
    Issue Date: 2009-11-30 18:19:52 (UTC+8)
    Publisher: International Journal of Management
    Abstract: A returns policy does not make any difference under demand certainty. In the case of demand uncertainty, the outcomes, resulting from the two policies, are different. The returns policy not only extracts unit profit from the whole channel, but through reducing the wholesale price also extracts the unit profit of the manufacturer. We show that a full returns policy always raises but does not reduce the retailer's unit profit. If the two parties in a distribution channel are both risk-averse, the no returns policy is always better for the manufacture than the full returns policy, even if marginal cost is small.
    Relation: International Journal of Management 24(2), pp.376-385
    Appears in Collections:[國際企業學系暨研究所] 期刊論文

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