Coordination via cost and revenue sharing in manufacturer–retailer channels

Kunter, Marcus

doi:10.1016/j.ejor.2011.07.001

Cited by 144 publications

(63 citation statements)

References 44 publications

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“…SeyedEsfahani et al [19] investigate cooperative advertisement in a bilevel supply chain considering a more comprehensive demand function under four power scenarios: equal power, manufacturer-Stackelberg, retailer-Stackelberg, and cooperation among the members; the results are then compared. Aust and Buscher [20], Haifang et al [21], Karray [22], and Kunter [23] are among the other papers that study the simultaneous e ects of advertising and pricing policies.…”

Section: Literature Reviewmentioning

confidence: 99%

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A bi-level programming model for decentralized manufacturer-distributer supply chain considering cooperative advertising

2017

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Abstract. This paper studies a bi-level decentralized supply chain consisting of one manufacturer and one distributor. Along with global advertising, the manufacturer participates in part of local advertising expenditure incurred by the distributor. Bi-level programming is applied to model the relationship between the manufacturer and distributer under two power scenarios of Stackelberg game framework. In the rst scenario, we consider the manufacturer as the leader and in the latter, we allow the distributer to act as the dominant member of the supply chain. In order to tackle bi-level programming models, a meta-heuristic genetic algorithm with hierarchical structure is developed for each scenario and optimal policies for the members in terms of pricing, advertising, inventory, and demand allocation are determined. Finally, several computational experiments are conducted on the data obtained from an automotive spare parts supply chain to demonstrate the validity of the developed models and compare the bene ts of members as well as of the entire system.

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Section: Literature Reviewmentioning

confidence: 99%

“…Inspired by their work, we use a similar form for price demand function, (1 :p) 1=v , in this paper. As for the advertising e ect, we apply the square root form of advertising demand function proposed by [14,[18][19][20]22,23] and adapt it to a supply chain with K di erent markets (n 1 k :…”

Section: Literature Reviewmentioning

confidence: 99%

A bi-level programming model for decentralized manufacturer-distributer supply chain considering cooperative advertising

2017

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“…At present, according to the contract, especially on cost sharing contract mainly concentrated in the field of supply chain has achieved many results [3][4][5][6][7].Cost sharing contract as an important way to achieve supply chain coordination, has been widespread concern and research [8][9][10].Lu Qihui [11]suppose that the market demand and service capacity are respectively related to the support level of service providers and service providers, and establish a service supply chain model based on cost sharing strategy; Gary Huaite [12] by establishing and solving the model found that in a monopoly or oligopoly market, only manufacturers and retailers between the cost sharing contract, it may be effective to maintain its market position; Hu Benyong, Lei Dong and Chen Xu [13] provides an option pricing method based on expected loss, that when the cost sharing and reputation sharing ratio to meet certain conditions, can achieve effective coordination of supply chain.…”

Section: Literature Reviewmentioning

confidence: 99%

Stochastic Differential Game Analyses of Tailored Taxi Service Coordination by Cost Sharing Contract

Hai-feng¹,

Dan²

2017

Proceedings of the 2017 International Conference on Mechanical, Electronic, Control and Automation Engineering (MECAE 2017)

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Abstract. Cooperation of all the members in the tailored taxi service plays an important role in the development of this fast-developing service industry. The platform enterprise can encourage cooperation from special car drivers by sharing their cost during the service, which we assume can increase the sales by accumulating the reputation of the service model. A differential game model is established with tailored taxi service that consists of one platform enterprise and one special car driver and we derive the optimal solutions of the Stackelberg equilibrium with the platform enterprise as the leader who partially shares the cost of the efforts of the driver and the cooperative game that both layers make efforts together to get the most profits of this system. The results make the benefits of the cost sharing contract in increasing the profits of both players as well as the whole service system, which means that the cost sharing contract is an effective coordination mechanism in the long-term relationship of the members in the service system.

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“…Different cooperative advertising models have been studied more sufficiently in the forward supply chain (FSC) [22][23][24][25][26][27][28][29][30][31][32] including two excellent reviews [22,23]. On the other hand, advertising occupies a crucial position in promoting the quantity of collected used products [33].…”

Section: Introductionmentioning

confidence: 99%

Game Theoretic Analysis of Pricing and Cooperative Advertising in a Reverse Supply Chain for Unwanted Medications in Households

2017

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Improper disposal of household unwanted medications (UMs) is an emergency problem around the world that adversely affects the sustainability of the environment and human's health. However, the current disposal practices, mainly based on advertising and collecting status, are unsatisfactory in most countries and regions. Thus, some scholars proposed an alternative disposal practice that is to provide incentives to customers. This study aims to compare a Single Model (advertising only) with a Joint Model (advertising with take-back pricing) in a two-echelon reverse supply chain (RSC) that is composed of one disposer and one collector. In each model, four games (non-cooperative, collector as the Stackelberg leader, disposer as the Stackelberg leader, and cooperative) were established in order to identify the optimal pricing and advertising strategies for both members. The results of the study indicate that there is a Pareto dominant range for Joint Model compared to Single Model, whereas Single Model has no Pareto improvement in any games. Furthermore, in non-cooperative games of Joint Model, it is better to implement the leader-follower structure rather than simultaneous movement structure. Additionally, it is verified that the cooperative game is feasible, which leads to the cooperation between the disposer and the collector, and the extra profit from the cooperation can be shared based on the Nash bargaining game. However, in Single Model, it is better for the disposer to act as a channel leader and the collector figures the follower.

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Coordination via cost and revenue sharing in manufacturer–retailer channels

Cited by 144 publications

References 44 publications

A bi-level programming model for decentralized manufacturer-distributer supply chain considering cooperative advertising

A bi-level programming model for decentralized manufacturer-distributer supply chain considering cooperative advertising

Stochastic Differential Game Analyses of Tailored Taxi Service Coordination by Cost Sharing Contract

Game Theoretic Analysis of Pricing and Cooperative Advertising in a Reverse Supply Chain for Unwanted Medications in Households

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