Manufacturer-retailer Competition and Coordination in a Dual Distribution System PDF Download

Author: Tamer Boyaci
Publisher:
ISBN:
Category : Business logistics
Languages : en
Pages : 74

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Author: Jennifer Ryan
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
We consider a dual channel supply chain in which a manufacturer sells a single product to end-users through both a traditional retail channel and a manufacturer-owned direct online channel. We adopt a commonly used linear demand substitution model in which the mean demand in each channel is a function of the prices in each channel. We model each channel as a newsvendor problem, with price and order quantity as decision variables. In addition, the manufacturer must choose the wholesale price to charge to the independent retailer. We analyze the optimal decisions for each channel and prove the existence of a unique equilibrium for the system. We compare this equilibrium solution to the solution for an integrated system, in which the manufacturer owns both the online store and the retailer. To enable supply chain coordination, we then propose two contract schemes: a modified revenue sharing contract and gain/loss sharing contract. We show that such contracts enable the manufacturer to maintain price discrimination, selling the products in different channels at different prices. Finally, we perform a comprehensive numerical study to consider the impact of the model parameters on the equilibrium and to demonstrate the performance of the proposed coordination contracts. We conclude that coordination is most critical for products which are highly price sensitive and for systems in which the online and traditional retail channels are not viewed as close substitutes.

Author: Amiya Basu
Publisher:
ISBN:
Category :
Languages : en
Pages : 0

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Book Description
We analyze a channel of distribution where a monopolistic manufacturer, as leader of the channel, selects distribution intensity and wholesale price, and independent retailers follow by selecting price. Retailer competition is analyzed using a new model that combines the Salop model of circular city and equidistant retailers with linear demand at each location on the circle. We obtain the Nash equilibrium in retailer prices in closed form and show that through the choice of decision variables, the manufacturer can dictate whether the retailers are local monopolies or in competition, and how much market is served. By increasing distribution intensity, the manufacturer can suppress retailer mark-ups, approximately coordinate the channel, and secure most of the profit gains. Assuming that a retailer requires a minimum profit to participate, we show that the manufacturer can coordinate the channel by setting a wholesale price higher than the manufacturer's marginal cost if there are multiple competing retailers. We show that the manufacturer's profit is maximized by a two-part tariff system with a fixed fee, and identify two simpler systems that give close to optimal profits without imposing any fee. Finally, we identify an exclusivity parameter capturing the quality of the product, and show that distribution intensity should be low when exclusivity is high. We also show that a manufacturer may find it profitable to increase distribution intensity by subsidizing the retailers when exclusivity is low.

Author: Management Association, Information Resources
Publisher: IGI Global
ISBN: 1799809463
Category : Business & Economics
Languages : en
Pages : 2148

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Book Description
Business practices are constantly evolving in order to meet growing customer demands. Evaluating the role of logistics and supply chain management skills or applications is necessary for the success of any organization or business. As market competition becomes more aggressive, it is crucial to evaluate ways in which a business can maintain a strategic edge over competitors. Supply Chain and Logistics Management: Concepts, Methodologies, Tools, and Applications is a vital reference source that centers on the effective management of risk factors and the implementation of the latest supply management strategies. It also explores the field of digital supply chain optimization and business transformation. Highlighting a range of topics such as inventory management, competitive advantage, and transport management, this multi-volume book is ideally designed for business managers, supply chain managers, business professionals, academicians, researchers, and upper-level students in the field of supply chain management, operations management, logistics, and operations research.

Author: David Simchi-Levi
Publisher: Springer Science & Business Media
ISBN: 1402079532
Category : Business & Economics
Languages : en
Pages : 818

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Book Description
The Handbook is a comprehensive research reference that is essential for anyone interested in conducting research in supply chain. Unique features include: -A focus on the intersection of quantitative supply chain analysis and E-Business, -Unlike other edited volumes in the supply chain area, this is a handbook rather than a collection of research papers. Each chapter was written by one or more leading researchers in the area. These authors were invited on the basis of their scholarly expertise and unique insights in a particular sub-area, -As much attention is given to looking back as to looking forward. Most chapters discuss at length future research needs and research directions from both theoretical and practical perspectives, -Most chapters describe in detail the quantitative models used for analysis and the theoretical underpinnings; many examples and case studies are provided to demonstrate how the models and the theoretical insights are relevant to real situations, -Coverage of most state-of-the-art business practices in supply chain management.

Author: David Simchi-Levi
Publisher: Taylor & Francis
ISBN: 9781402079528
Category : Business & Economics
Languages : en
Pages : 840

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Book Description
The Handbook is a comprehensive research reference that is essential for anyone interested in conducting research in supply chain. Unique features include: -A focus on the intersection of quantitative supply chain analysis and E-Business, -Unlike other edited volumes in the supply chain area, this is a handbook rather than a collection of research papers. Each chapter was written by one or more leading researchers in the area. These authors were invited on the basis of their scholarly expertise and unique insights in a particular sub-area, -As much attention is given to looking back as to looking forward. Most chapters discuss at length future research needs and research directions from both theoretical and practical perspectives, -Most chapters describe in detail the quantitative models used for analysis and the theoretical underpinnings; many examples and case studies are provided to demonstrate how the models and the theoretical insights are relevant to real situations, -Coverage of most state-of-the-art business practices in supply chain management.

Author: Bo Li
Publisher: World Scientific
ISBN: 1800610416
Category : Business & Economics
Languages : en
Pages : 241

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Book Description
In the era of e-commerce and digitalization, new commercial patterns and opportunities are emerging. For example, in addition to traditional reselling marketing channels, manufacturers can easily open direct channels using a variety of digital marketing strategies. These new marketing channels will cause conflict and competition between manufacturers and resellers. This raises the important question of how to make optimal decisions for multiple players in dual-channel supply chain contexts. Within changing and uncertain operation environments, business enterprises must face tougher challenges than before to survive in competitive markets.This book aims to address representative decision-making problems in dual-channel supply chains with risk-averse channel members. The most recently developed risk assessment technique, Conditional Value-at-Risk (CVaR), will be adopted as the predominant criterion to measure the risk-averse attitude. Based on game theory, important issues such as channel selection, pricing, order quantity, manufacturer encroachment, greening strategy, consumer return policies, financing strategies, channel coordination, contract design, information asymmetry, and capacity constraint will be modeled and analyzed. This book will help readers better understand operations management in dual-channel supply chain contexts with risk-averse behaviors, and will also provide effective techniques and tools for researchers and offer managerial insights for practitioners.

Author: Thorsten Blecker
Publisher: Springer Science & Business Media
ISBN: 0387322248
Category : Business & Economics
Languages : en
Pages : 292

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Book Description
This book defines the parameters of the emerging business strategy of mass customization, covering the main categories in a systematic examination of: manufacturing systems and mass customization; supply chain management and mass customization; and information systems and mass customization. The book provides a conceptual framework for mass customization, its tools, its solutions, and real-world examples of successful implementations of the business strategy.

Author: National Association of Manufacturers (U.S.). Research Department
Publisher:
ISBN:
Category : Marketing
Languages : en
Pages : 24

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Book Description

Author: Kiyohiko Shibayama
Publisher:
ISBN:
Category : Competition, International
Languages : en
Pages : 102

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Book Description