demand is assumed constant in the classical economic order quantity (eoq) model. however, in the real world, the demand is dependent on many factors such as the selling price, warranty of product and marketing effort. in addition pricing and ordering quantity decisions are interdependent for a seller when demand for the product is price sensitive in the inventory models. these types of models a...

This study proposes a novel option-revenue sharing coordination contract framework. In the proposed model, the retailer determines the number of order sales effort. The manufacturer sets the price of products for the wholesale strategy. The investigated supply chain problem analyzes the results of different strategies. In the proposed coordination contract problem, two types of games including ...

Autonomous „word of mouth‟, as a channel of social influence that is out of firms‟ direct control, has acquired particular importance with the development of the Internet. Depending on whether a given product or service is a good or a bad deal, this can significantly contribute to commercial success or failure. Yet the existing dynamic models of sales in marketing still assume that the influenc...

This study models a joint pricing, inventory, and preservation decision-making problem for deteriorating items subject to stochastic demand and promotional effort. The generalized price-dependent stochastic demand, time proportional deterioration, and partial backlogging rates are used to model the inventory system. The objective is to find the optimal pricing, replenishment, and preservation t...

Retail price and promotional effort are two important parameters on which demand of a commodity largely depends. This paper develops and analyzes a two-echelon supply chain where market demand depends on both retail price and sales effort. The centralized model is studied as the benchmark case, and the wholesale price-only contract is studied as the base case in which each entity tries to maxim...

A fundamental decision for any manufacturer is when to sell to a downstream retailer. A manufacturer can sell either early, i.e., well in advance of the selling season, or late, i.e., close to the selling season. This paper examines the impact of information asymmetry, retailer sales effort, and contract type on the manufacturer’s sale-timing decision. We find that if information is symmetric, ...