Coordinating a Supply Chain with Price and Advertisement Dependent Stochastic Demand
Joint Authors
Yan, Xiaoming
Li, Liying
Wang, Yong
Source
Issue
Vol. 2013, Issue 2013 (31 Dec. 2013), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2013-12-18
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Medicine
Information Technology and Computer Science
Abstract EN
This paper investigates pricing and ordering as well as advertising coordination issues in a single-manufacturer single-retailer supply chain, where the manufacturer sells a newsvendor-type product through the retailer who faces a stochastic demand depending on both retail price and advertising expenditure.
Under the assumption that the market demand has a multiplicative functional form, the Stackelberg and cooperative game models are developed, and the closed form solution to each model is provided as well.
Comparisons and insights are presented.
We show that a properly designed revenue-cost-sharing contract can achieve supply chain coordination and lead to a Pareto improving win-win situation for channel members.
We also discuss the allocation of the extra joint profit according to individual supply chain members’ risk preferences and negotiating powers.
American Psychological Association (APA)
Li, Liying& Wang, Yong& Yan, Xiaoming. 2013. Coordinating a Supply Chain with Price and Advertisement Dependent Stochastic Demand. The Scientific World Journal،Vol. 2013, no. 2013, pp.1-12.
https://search.emarefa.net/detail/BIM-1032782
Modern Language Association (MLA)
Li, Liying…[et al.]. Coordinating a Supply Chain with Price and Advertisement Dependent Stochastic Demand. The Scientific World Journal No. 2013 (2013), pp.1-12.
https://search.emarefa.net/detail/BIM-1032782
American Medical Association (AMA)
Li, Liying& Wang, Yong& Yan, Xiaoming. Coordinating a Supply Chain with Price and Advertisement Dependent Stochastic Demand. The Scientific World Journal. 2013. Vol. 2013, no. 2013, pp.1-12.
https://search.emarefa.net/detail/BIM-1032782
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1032782