Supply chain coordination via two-way cooperative advertising contract considering competing retailers

Alaei, Saeed; Setak, Mostafa

doi:10.24200/sci.2016.3960

Cited by 5 publications

(3 citation statements)

References 28 publications

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“…So, in order to meet these challenges, different tools and models for representing a material flow as well as the flow of information, sources and system behaviors are required to analyze such systems [23]. What is so important about this issue is the network approach to the flow of resources, information and materials that are almost common feature of all these methods.…”

Section: The Proposed Methodologies For Identifying the Conflictsmentioning

confidence: 99%

A knowledge-based algorithm for supply chain conflict detection based on OTSM-TRIZ problem flow network approach

2017

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The coordination and integration of efforts and activities of supply chain (SC) members that is a key component of supply chain management success has become a challenging activity due to conflicts in such systems. Lack of proper detection of conflicts in a SC and therefore mismanagement of them will increase disruption risk in the SC. In this article, a knowledge-based algorithm is presented based on the OTSM-TRIZ (general theory of powerful thinking) problem flow network approach to identify, formulate and solve the conflicts of SCs before they occur and cause harmful effects. The proposed algorithm involves analyzing and developing network of problems (NoP) in order to transfer it into a network of conflicts. This study validated the proposed algorithm through a case demonstration. Through the implementation and application, the result demonstrated that this knowledgebased algorithm was able to identify and formulate supply chain conflicts before they occur and more importantly it greatly increased the coordination between supply chain entities.

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Section: The Proposed Methodologies For Identifying the Conflictsmentioning

confidence: 99%

A knowledge-based algorithm for supply chain conflict detection based on OTSM-TRIZ problem flow network approach

2017

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“…Most studies on cooperative advertising considered monopoly at upstream/downstream echelon so that only one supplier/manufacturer located at the upstream echelon and only one retailer/purchaser exists on the downstream echelon [22,27]. However, a number of researchers developed models of duopoly [28][29][30][31][32] and oligopoly (Jørgensen & Zaccour [33]), in which rivals compete with each other to achieve greater benefits. In this paper, the main focus is on the models which consider a duopoly market.…”

Section: Literature Reviewmentioning

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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“…Considering the investment problem of supply chains, Proch et al [36] built a continuous time model and found that the supplier can encourage manufacturers to raise their investment level by subsidizing a portion of their investment costs to improve the underinvestment problem. In contrast to Proch et al [36], Alaei and Setak [37] proposed that subsidy negotiation can further improve advertising performance by establishing and analyzing the dynamic differential game model. In addition, many scholars proposed that subsidy is not confined to one-way subsidy.…”

Section: Introductionmentioning

confidence: 98%

Organic Food Labeling and Advertising: A Tripartite Game Model between One Supplier and Two Heterogeneous Manufacturers

et al. 2019

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The development of the organic food industry is of great significance to the environment and society as consumers increasingly prefer green and healthy food. However, certain production and investment problems must be solved. A tripartite game model is established in this study to investigate the labeling and advertising investment decisions in an organic food supply chain composed of one supplier and two heterogeneous manufacturers by the biform game approach. In addition, a subsidy mechanism is introduced to alleviate underinvestment. The results show that, first, the supplier will label if labeling cost is relatively low without considering advertising investment. Second, the supplier will not label if advertising investment is considered because of the “diffusion of responsibility” mentality, and both manufacturers will invest in advertising as a result of equilibrium in dominant strategies. Third, the advertising subsidy mechanism can achieve Pareto improvement and coordinate the supply chain. Finally, manufacturer heterogeneity will lead to differentiated subsidy strategies that the supplier can claim to give additional subsidies to the weak manufacturer, thereby weakening the “diffusion of responsibility” mentality.

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Supply chain coordination via two-way cooperative advertising contract considering competing retailers

Cited by 5 publications

References 28 publications

A knowledge-based algorithm for supply chain conflict detection based on OTSM-TRIZ problem flow network approach

A knowledge-based algorithm for supply chain conflict detection based on OTSM-TRIZ problem flow network approach

Cooperative advertising with two local advertising options in a retailer duopoly

Organic Food Labeling and Advertising: A Tripartite Game Model between One Supplier and Two Heterogeneous Manufacturers

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