Erwin Widodo

Managing sales return in dual sales channel: its product substitution and return channel analysis

Although many efforts have been devoted in exploring dual sales channel (DSC) financial performance, the issue of managing its sales return is still lacking attention. Mismanagement in such online return handling may threaten channel profitability. Therefore, we propose three scenarios: first, the benchmark scenario is a lost-sales consideration model, the second one is an online facility return scenario, which represents the availability of an online facility to provide product substitution and in accommodating online customer preference to return the product through a conventional store, a conventional store return scenario is also prepared as the third scenario. The first two scenarios cope with the importance of product substitution; meanwhile, the second and the third ones examine the selection of the sales return channel. By analysing the equilibrium values of the total and partial profits given by the channel prices as the primary decision variables under Bertrand and Stackelberg schemes, some beneficial insights for managing a DSC by considering its sales return are provided.

Adjusted-Stackelberg scheme in applying profit-sharing to coordinate dual channel supply chain

Dual channel supply chain (DCSC), a structure of simultaneous sales through conventional store and online facility has been gaining popularity. However, besides its potential, DCSC also comes with its inner-competition, i.e., between incumbent conventional store and newly introduced online facility. This situation leads to the necessity of an effective coordination mechanism. We propose an approach of profit sharing based on an adjusted-Stackelberg-equilibrium result on DCSC prices. Our approach is simply practical unlike the complicated full-coordination of Bertrand scheme but is able to offer higher total DCSC profit than the original Stackelberg scheme.

Modeling of Community-Based Mangrove Cultivation Policy in Sidoarjo Mudflow Area by Implementing Green Economy Concept

One of the environmental damages in Indonesia is Sidoarjo mudflow disaster causing impact significantly in various sectors. These problems of course could lead to instability for the local social dynamics and the environment as well as the global economy. Cultivating mangrove vegetation is one of the answers to overcome these problems, especially to neutralize the hazardous waste contained in the mud and definitely to rebuild the green zone in the observed area. It is necessary to conduct a research on mangrove cultivation policy in Sidoarjo mudflow area in order to support green economy concept giving benefits to the economy, environment and society. Considering several numbers of variable which have complex and causal relationships in mangrove cultivation policy in line with green economy concept, and also the developing pattern of line with the changing time make the problem to be solved appropriately with system dynamics approach which is able to analyze and assess the mangrove cultivation policy in accordance with the principles of green economy concept. Therefore, by modeling the policy of mangrove cultivation based on the concept of green economy is expected to be able to reduce carbon emissions and to create a new ecosystem that could be used by communities to give added value and selling for Sidoarjo mudflow area.