Coordinating ordering and pricing decisions in a two-stage distribution system

Yu Te Liu, Wei Ming Wang, Chung-Chi Hsieh

研究成果: Conference contribution

摘要

We consider a particular model of short-term discounting that the distributor offers a discounted price for the retailers' orders placed at the beginning of its replenishment cycle, in a non-cooperative distribution system with one distributor and multiple retailers, each facing price-sensitive demand. We examine the value of the price discount strategy as a mechanism for the distributor to coordinate the retailers' ordering and pricing decisions. Our analysis reveals that, in the presence of homogeneous retailers, the distributor's profit percentage increase due to coordination generally is decreasing in the number of retailers and in the inventory holding cost rate. Although an increase of the inventory holding cost rate has a negative effect on the distributor's profit, it may have a positive effect on the retailers' profits. We further find in the presence of heterogeneous retailers that offering a discounted price benefits the distributor when both the inventory holding cost rate and the variation of demand are small or large.

原文English
主出版物標題Proceedings of the 2009 6th International Conference on Service Systems and Service Management, ICSSSM '09
頁面438-443
頁數6
DOIs
出版狀態Published - 2009 十一月 16
事件2009 6th International Conference on Service Systems and Service Management, ICSSSM '09 - Xiamen, China
持續時間: 2009 六月 82009 六月 10

出版系列

名字Proceedings of the 2009 6th International Conference on Service Systems and Service Management, ICSSSM '09

Other

Other2009 6th International Conference on Service Systems and Service Management, ICSSSM '09
國家/地區China
城市Xiamen
期間09-06-0809-06-10

All Science Journal Classification (ASJC) codes

  • 資訊系統
  • 資訊系統與管理

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