Designing a quantity discount scheme for a newsvendor-type product with numerous heterogeneous retailers

Lau, Amy Hing‐Ling; Lau, Hon‐Shiang; Wang, Jiancai

doi:10.1016/j.ejor.2006.04.011

Cited by 21 publications

(14 citation statements)

References 21 publications

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“…Many extensions of the newsvendor problem have been proposed in the last decade. These extensions include: (a) deferent states of information about demand, such as that demand rate may be a function of market price [1] or of marketing effort [2] or even of the instantaneous stock level [3];(b) deferent supplier pricing policies and discounting structures, such as using different pricing policies to coordinate a supply chain [4], or modifying the traditional newsvendor analysis to handle different types of pricing policies [5];(c) different objectives and utility functions [6]. During the models mentioned above, the trade credit was not considered.…”

Section: Introductionmentioning

confidence: 99%

An inventory model with stochastic demand under conditionally permissible delay in payments

Yueli

Jiangtao

Hou

2015

The 27th Chinese Control and Decision Conference (2015 CCDC)

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Researchers in the past have established the newsvendor model with rarely considering trade credit. In practices, the supplier usually provides the retailer a permissible delay in payments to stimulate more order quantity. As a result, we try to establish an inventory model for stochastic demand, in which the supplier provides trade credit to the retailer if the order quantity is greater than or equal to a predetermined quantity. The residual or shortage at the end of the cycle is dealt as the newsvendor problem. Two useful theorems to determine the optimal order quantity are derived. Several numerical examples are provided to illustrate the results. The sensitivity analysis on main parameters is presented.

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Section: Introductionmentioning

confidence: 99%

An inventory model with stochastic demand under conditionally permissible delay in payments

Yueli

Jiangtao

Hou

2015

The 27th Chinese Control and Decision Conference (2015 CCDC)

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“…In the supply chain management literature, various supply chain contracts have been used as an efficient means to coordinate entities within the supply chain to improve system-wide efficiency (see [1][2][3][4][5] ). "Returns policy" is one of the commonly used supply chain contracts.…”

Section: Introductionmentioning

confidence: 99%

Supply chain coordination with loss-averse agents under a returns policy

Qiao

2012

2012 International Conference on Management Science &Amp; Engineering 19th Annual Conference Proceedings

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Supply chain coordination with both a loss-averse retailer and loss-averse supplier under a returns policy is studied. The objective of each supply chain agent is to maximize the expected utility. A returns policy is applied for channel coordination and mitigating loss aversion. The necessary and sufficient conditions for the optimal returns price are identified. In particular, it is shown that a returns policy can't always coordinate the supply chain and its coordination depends on how the difference between the loss aversions of the supplier (as a supply chain coordinator) and the retailer is. Numerical studies are conducted and managerial insights are developed.

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“…For example, Weng (1995) discussed how to coordinate the profits of a single supplier and a group of homogeneous buyers by considering both all-unit and incremental quantity discount policies. Lau et al (2007) presented a practical approach for designing a quantity-discount scheme for a manufacturer who supplies a newsvendor-type product to a large number of heterogeneous retailers. Chiou et al (2007) devised a mutually beneficial coordination mechanism for an SC taking advantage of price discount under the joint replenishment framework.…”

Section: Introductionmentioning

confidence: 99%

Incentive contract design in competing distribution channels

Chang-xian

Tian

Sun

et al. 2009

Production Planning & Control

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The service provision of the retailer has a great effect on customer satisfaction and market demand in the production distribution channel. Because the service level is the private information of the retailers in a supply chain, a key decision problem of the manufacturers is how to motivate the retailers to offer high service. This article addresses this issue under the framework of two competing distribution channels, where each channel has a single manufacture and a single retailer. We use the principal-agent theory and propose two models under both symmetric and asymmetric information. We show that external competition is a driving force to improve the service level of the retailers. The manufacturers' profits decrease under asymmetric information in comparison with that under symmetric information. In addition, the manufacturers' profits increase when weak competition exists among retailers under asymmetric information. We explore applications of our model and design contracts through a case study of a large consumer electronics corporation in China.

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Designing a quantity discount scheme for a newsvendor-type product with numerous heterogeneous retailers

Cited by 21 publications

References 21 publications

An inventory model with stochastic demand under conditionally permissible delay in payments

An inventory model with stochastic demand under conditionally permissible delay in payments

Supply chain coordination with loss-averse agents under a returns policy

Incentive contract design in competing distribution channels

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