Supply chain performance for deteriorating items with cooperative advertising

Zhang, Jianxiong; Li, Jianqi; Lu, Lihao; Dai, Rui

doi:10.1007/s11518-015-5279-8

Cited by 22 publications

(10 citation statements)

References 38 publications

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“…Furthermore, we have A ND r = A D r , A D m > A ND m when φ * > 0, which mean the cooperative advertising program lead to higher manufacturer's investment in advertising. This is consistent with the literature about cooperative advertising programs in [16], [36].…”

Section: The Optimal Strategies In the Decentralized Scenariosupporting

confidence: 92%

“…In [35], an optimal control model of cooperative advertising was established in a stochastic environment, and the comparisons between cooperative advertising and non-cooperative advertising show that the cooperative advertising is superior to the non-cooperative one when the manufacturer's margin is higher than the retailer's. Motivated by [35], subsequently, the effects of the cooperative advertising on the pricing and production strategies were discussed in [36] for the deteriorating items by using optimal control theory.…”

Section: Introductionmentioning

confidence: 99%

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New Optimal-Control-Based Advertising Strategies and Coordination of a Supply Chain With Differentiated Products Under Consignment Contract

Chen

2019

IEEE Access

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With the aid of optimal control theory, the cooperative advertising problem is discussed for a supply chain under consignment contract in a competitive environment. Consider the case that the market demand of products is affected by advertising effort and goodwill, both the optimal advertising strategies and advertising participation rate in the centralized and decentralized settings are given. The state-dependent contract with the slotting fees is introduced to coordinate the considered supply chain. Our results demonstrate that the participation rate is closely related to the marginal profits of channel members and the competition intensity between products. Besides, the state-dependent contract with the slotting fees can effectively coordinate the supply chain when the contract parameters satisfy certain conditions. Finally, the sensitivity analysis of the competition intensity between products is conducted by using some simulations. INDEX TERMS Optimal control, consignment contract, brand goodwill, cooperative advertising, coordination contract. ZHIHUI WU received the B.Sc. degree in information and computation science and the M.Sc. degree in applied mathematics from the Hefei Uni

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Section: The Optimal Strategies In the Decentralized Scenariosupporting

confidence: 92%

Section: Introductionmentioning

confidence: 99%

New Optimal-Control-Based Advertising Strategies and Coordination of a Supply Chain With Differentiated Products Under Consignment Contract

Chen

2019

IEEE Access

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“…This participation rate is often neglected in the literature (Seyedesfahani et al, 2011). The paper of Zhang et al (2017b) focused on how participation rate together with production decisions affect supply chain performance. Another similar study considered not only the participation rate but also the accrual rate under a dynamic cooperative advertising (Zhang et al, 2017a).…”

Section: Advertising Decisionsmentioning

confidence: 99%

Game theory in supply chain management: current trends and applications

Vasnani

Chua

Ocampo³

et al. 2019

IJADS

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As game theory continues to be a relevant approach in evaluating supply chain coordination and competition, this paper explores the various applications and current trends of game theory to supply chain management through an exhaustive review on the literature. This work reviews more than 200 papers which cover several supply chain formations, structures, environments, and decisions together with different game theoretic concepts and applications. First, the paper elaborates on the basic concepts of Nash and Stackelberg games to allow further understanding of their applications in supply chain analysis. The review is then presented and divided into three segments: 1) the development of game theory; 2) the use of Nash and Stackelberg solution concepts in analysing supply chain management; 3) the integration of game theory to different supply chain structures, decisions, and present conditions. Moreover, descriptive analytics are also provided to highlight the distribution of trending topics in the domain field. Finally, the paper provides a summary of the review and recommendation for future works in line with using game theory for supply chain analysis.

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“…Jørgensen et al (2000) were the first to use Nerlove-Arrow model to consider dynamic cooperative advertising. Other works in this group include Jørgensen et al (2003), Karray and Zaccour (2005), Zhang et al (2017).…”

Section: Literature Reviewmentioning

confidence: 99%

A mathematical model of the effect of subsidy transfer in cooperative advertising using differential game theory

Ezimadu

2018

J Ind Eng Int

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This work deals with subsidy transfer from a manufacturer to a retailer through the distributor in cooperative advertising. While the retailer engages in local advertising, the manufacturer indirectly participates in retail advertising using advertising subsidy which is given to the distributor, who in turn transfers it to the retailer. The manufacturer is the Stackelberg game leader; the distributor is the first follower, while the retailer is the last follower. The work employs differential game in modelling the effect of subsidy on the individual and channel payoffs; and models the awareness share dynamics using Sethi's sales-advertising model. It obtains Stackelberg equilibriums characterising four-game scenario: no subsidy from neither the manufacturer nor the distributor; withholding of manufacturer's subsidy by the distributor; provision of subsidy by the distributor in the absence of the manufacturer's participation; and the participation of both the manufacturer and distributor in retail advertising. It shows that in the absence of subsidy from the manufacturer, the distributor should intervene by providing subsidy to the retailer. However, if this is impossible, he should avoid withholding the subsidy meant for retail advertising. The players' payoffs as well as the channel payoff are worst with non-participation of both the manufacturer and the distributor, and best with transfer of subsidy.

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Supply chain performance for deteriorating items with cooperative advertising

Cited by 22 publications

References 38 publications

New Optimal-Control-Based Advertising Strategies and Coordination of a Supply Chain With Differentiated Products Under Consignment Contract

New Optimal-Control-Based Advertising Strategies and Coordination of a Supply Chain With Differentiated Products Under Consignment Contract

Game theory in supply chain management: current trends and applications

A mathematical model of the effect of subsidy transfer in cooperative advertising using differential game theory

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