Retailer shelf-space management with trade allowance: A Stackelberg game between retailer and manufacturers
| Autor: | Faiz A. Al-Khayyal, Yu-Chung Tsao, Guanghua Han, Richard W. Lu, Na An, Jye-Chyi Lu |
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| Rok vydání: | 2014 |
| Předmět: |
Piecewise linearization
Economics and Econometrics Mathematical optimization Shelf space Stackelberg competition Economics Statistical model Management Science and Operations Research Nonlinear mixed integer programming General Business Management and Accounting Trade promotion Industrial and Manufacturing Engineering Profit (economics) |
| Zdroj: | International Journal of Production Economics. 148:133-144 |
| ISSN: | 0925-5273 |
| DOI: | 10.1016/j.ijpe.2013.09.018 |
| Popis: | Motivated by the significant influence of trade allowance on store operation and the efficiency of shelf-space allocation, this article develops a model for optimizing category-level shelf-space management. A category shelf-space allocation framework with trade allowance is presented and a multi-player Retailer Stackelberg game is introduced to model the interaction between retailer and manufacturers. With this framework, a retailer maximizes profit by taking the manufacturers' trade allowance response into account, which provides a realistic approach of simultaneously determining the shelf-space and trade promotion decisions under the consideration of interactions among products. A piecewise linearization method is employed to reformulate the Mixed Integer Nonlinear Programming (MINLP) problem into a linear MIP problem for optimal solutions. Numerical examples demonstrate significant advantage of the proposed framework and quantitative analysis leads to a variety of managerial insights. |
| Databáze: | OpenAIRE |
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