Series of Dept Research Seminars - “Implications for the Role of Retailers in Quality Assurance" (Date: 17 February 2016)
Our speaker Professor Mingming Leng would like to share with us on "Implications for the Role of Retailers in Quality Assurance".
We investigate a manufacturer-retailer channel to explore the role of a retailer in assuring the quality of a manufacturer's product as a quality gatekeeper. Such a gatekeeping activity can entail a reduction in the defective rate for consumers, if the retailer charges the manufacturer a penalty for each identified defect that is no smaller than the market penalty for an unidentified defect. As a result of the retailer's gatekeeping, the change in the negotiated wholesale price only depends on the manufacturer's individual benefit, whereas the change in the retailer's optimal retail price is associated with the channel-wide benefit. When the impact of quality relative to retail price on demand is higher, the retailer benefits more from her gatekeeping activity, thus having a greater incentive to take on the quality gatekeeping responsibility. Moreover, the retailer's gatekeeping generates a larger increase in the demand as well as each firm's profit, when the retailer has a stronger relative bargaining power.
All are welcome and registration is not required.
17 February 2016 (Wednesday)
16:30 - 17:30
|About the Speaker||
Professor Mingming Leng is a Professor and the Head in the Department of Computing and Decision Sciences at Lingnan University, where he is also the Founding Director of the Master of Science Programme in eBusiness and Supply Chain management. Professor Leng holds a Ph.D. degree in Management Science/System from McMaster University’s DeGroote School of Business, Canada. He is currently interested in operations and supply chain management, game theory, and interface between operations and other disciplines. He has published a number of papers in top-tier or highly-respected journals such as Operations Research, Production and Operations Management, Naval Research Logistics, IIE Transactions, Operations Research Letters, Decision Sciences, European Journal of Operational Research, and others. Moreover, Professor Leng is a member in the Editorial Review Board of the top journal Production and Operations Management. In addition to academic experiences, Professor Leng has five years working experience in industry.