Analysis of Production - Inventory Decisions in a Decentralized Supply Chain

Alaei, Saeed; Behravesh, Masoud; Karegar, Nayere

doi:10.18267/j.pep.480

Cited by 6 publications

(4 citation statements)

References 28 publications

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“…Study on retailers' competition in the vertical market conditions is presented in [11][12][13][14][15][16].…”

Section: розвиток методів управління та господарювання на транспорті mentioning

confidence: 99%

“…Feng and Lu [13] have analyzed the contracting behaviors in a two-tier supply chain system consisting of two competing manufacturers selling to two competing retailers. Alaei et al [14] have analyzed production -inventory decisions in a decentralized supply chain. A production inventory problem is considered in a two-level supply chain.…”

Section: розвиток методів управління та господарювання на транспорті mentioning

confidence: 99%

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Price competition between retailers under symmetric costs

Melnikov¹

2017

DMEMT

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Integrating operations and marketing decisions are an important objective for retailers in today's competitive environment. An obvious problem common to the retail industry is the joint optimization of the lot size of a product to be stocked and the selling price in order to maximize profit. Pricing and inventory control strategies are closely related. Pricing decisions alter demand forecasts, which are used by inventory control systems. We note that in the classical economic order quantity (EOQ) model the demand is assumed as constant. A lot of important results have been obtained in this field of study. There are many studies which modify this condition, in particular with linear demand function. Further studies are related to the complexity of market structures, in particular, considering the horizontal competition between retailers. In this paper the Bertrand's price competition in the retail duopoly with symmetric costs is analyzed. Retailers sell substitute products in the framework of the classical EOQ model with linear demand function. Products are stored in a warehouse and are evenly sold in the retail network. We assume that every retailer maximizes profit per unit of time on the order size and the price at a current price competitor. The market potential is considered to be the bifurcation parameter of retailers. Level of the barrier to market penetration depending on the bifurcation parameter is analyzed. The conditions of Bertrand-Nash equilibrium in parametric and trigonometric forms are found. The theoretical results are illustrated by a numerical example. Based on the results obtained, retailers can plan the level of profitability of logistics costs and assess the level of the entry barrier to the market.

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“…Study on retailers' competition in the vertical market conditions is presented in [11][12][13][14][15][16].…”

Section: розвиток методів управління та господарювання на транспорті mentioning

confidence: 99%

Section: розвиток методів управління та господарювання на транспорті mentioning

confidence: 99%

Price competition between retailers under symmetric costs

Melnikov¹

2017

DMEMT

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“…Supply chain coordination is a vehicle between channel members to redesign decision rights, workflow, and resources in order to get higher profit margins, improved customer service performance, and faster response time [2]. Retail fixed markup [3], Buyback [4], revenue sharing [5], and quantity discount [6] have been among the widely used coordination contracts in practice.…”

Section: Introductionmentioning

confidence: 99%

Cooperative advertising with two local advertising options in a retailer duopoly

Alaei

Manavizadeh

2020

Scientia Iranica

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This paper considers the issue of cooperative advertising with local advertising options in a channel with three players, including a manufacturer and two retailers. The current study, expands the cooperative advertising literature to a case where there exist two options for local advertising investment. Moreover, this paper compares two cases of presence and absence of cooperative advertising, which has almost been neglected in cooperative advertising literature. The purpose is to determine equilibrium strategy of retailers' advertising options, players' advertising expenditures and the manufacturer' participation rates on retailers' investment. The aforementioned problem is analyzed as a three-stage game, using backward induction. In the first and second stages, advertising investments of players are determined analytically. Then, in the third stage, the Nash equilibrium pair of advertising options can be found using numerical study. The problem is solved using illustrative examples in two cases of presence and absence of the cooperative advertising contract. Finally, the conditions for which offering the contract is win-win for all players, are identified. A Sensitivity analysis has been carried out to explain the efficacy of the model.

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“…The ever-rising competition on the retail market makes this position even more diffi cult, forcing retailers to constantly search for new, more effi cient ways of executing business processes. Consequently, retailers in coordination with other supply chain members (Alaei et al, 2014) devote particular attention to inventory management, so as to achieve certain cost cuts, satisfy their customers, and offer them the right product at the right time at the right place. In particular, Wild (2002) argues that the key objective of inventory control is refl ected in attaining the preferred level of product availability as a signifi cant aspect of customer service.…”

Section: Introductionmentioning

confidence: 99%

The Effect of Inventory Level on Product Availability and Sale

Grubor¹,

Milićević²,

Đokić³

2016

Prague Economic Papers

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By increasing inventories, retailers attempt to raise service levels, and thus increase sale. However, in addition to a positive impact on product availability and sale, higher inventory levels may cause problems in performing in-store activities. As poor backroom-to-shelf replenishment process emerges as one of the most common causes of stock-out situations, this article compares store and on-shelf FMCG product availability at SKU level in diff erent stores of a single retailer. In relation to this, besides direct, we have also investigated the indirect eff ect of inventory level on sale, by using store and shelf out-of-stocks as mediators. The results of the research showing much higher level of shelf-compared to store stock-out rate confi rmed the existence of the problem in the realization of internal product fl ows within retail stores. However, despite the occurrence of this problem, besides direct positive eff ect of inventory level on sale, its indirect eff ect was positive as well. Therefore, these results were analysed in the context of other similar studies. In addition to empirical research, the article also discusses certain implications of more effi cient organisation of in-store activities.

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Analysis of Production - Inventory Decisions in a Decentralized Supply Chain

Cited by 6 publications

References 28 publications

Price competition between retailers under symmetric costs

Price competition between retailers under symmetric costs

Cooperative advertising with two local advertising options in a retailer duopoly

The Effect of Inventory Level on Product Availability and Sale

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