This article presents a review of the issues associated with a manufacturer’s pricing strategies in a twoechelon supply chain that comprises one manufacturer and two competing retailers, with warranty period-dependent demands. The manufacturer, as a Stackelberg leader, specifies wholesale prices to two competing retailers who face warranty period-dependent demand and have different sales costs....

We consider the assortment optimization problem when customer preferences follow a mixture of Mallows distributions. The assortment optimization problem focuses on determining the revenue/profit maximizing subset of products from a large universe of products; it is an important decision that is commonly faced by retailers in determining what to offer their customers. There are two key challenge...

We consider a supply chain in which a single supplier with fixed capacity sells to several independent retailers or manufacturers. The retailers have private information about their individual markets (e.g., mean market demand), which influences the size of their orders to the supplier. If the sum of all retailer orders exceeds the supplier’s capacity, the supplier uses a pre-declared rule, whi...

This study considers a supply chain that consists of n retailers, each of them facing a newsvendor problem, and a supplier. Groups of retailers might increase their expected joint profit by joint ordering and inventory centralization. However, we assume that the retailers impose some level of stock that should be dedicated to them. In this situation, we show that the associated cooperative game...

This paper studies an online retail supply chain that includes one referral infomediary and one retailer, in which the infomediary provides demand referral service to retailers and incentive rebates to customers. A linear dual-channel demand with the effect of customer incentive and horizontal service cooperation model was established, and then the optimal policies of infomediary and retailers ...

Channel coordination in search advertising is an important but complicated managerial decision for both manufacturers and retailers. A manufacturer can sponsor retailers to advertise his products while at the same time compete with them in position auctions. We model a manufacturer and retailers’ cooperation and intra-brand competition in advertising, as well as inter-brand competition with oth...

April 2012 Abstract A manufacturer will often limit competition among downstream partners by authorizing only a select group of retailers to carry its product. However, it is not uncommon for authorized retailers to create an additional competitor by diverting units to an unauthorized seller. Prior research proposes that this diversion will not be optimal unless the diverted units are sold in n...

In the rapidly changing environment of Fast Moving Consumer Goods sector where new product launches are frequent, retail channels need to reallocate their shelf spaces intelligently while keeping up their total profit margins, and to simultaneously avoid product pollution. In this paper we propose an optimization model which yields the optimal product mix on the shelf in terms of profitability,...

In this paper, we apply continuous review (S-1, S) policy for inventory control in a three-echelon supply chain (SC) including r identical retailers, a central warehouse with limited storage space, and two independent manufacturing plants which offer two kinds of product to the customer. The warehouse of the model follows (M/M/1) queue model where customer demands follow a Poisson probabilit...