Supply Chain Coordination with Revenue Sharing and Slotting Allowances

Autor: Wen-Ling Chang, 張文齡
Rok vydání: 2005
Druh dokumentu: 學位論文 ; thesis
Popis: 93
Revenue sharing and slotting allowances arise because the retailer’s bargaining power with respect to each manufacturer becomes large. We consider the scenario under these mechanisms, consignment, revenue-sharing and slotting allowances. The single-period inventory model in which the demand pattern is a multivariate function of price, time, and level of inventory. The supplier needs pay the lump-sum payments which is decided by the retailer that supplier makes to retailer for shelf-space. The supplier decides on the retail price and delivery quantity for his product and still retains ownership of the goods; the retailer deducts a percentage from the selling price and remits the balance to the supplier. In this paper we show that, under such a contract, both the overall channel performance of individual firms depend critically on demand price elasticity, demand time elasticity, demand inventory elasticity and on the retailer’s share of channel cost. We show that the decentralized decisions approach the centralized decisions as the price-elasticity index or the retailer’s cost share increases or inventory-elasticity index decreases and the channel profit loss cannot exceed 26.4%. Finally, we prove the channel to achieve pareto improvement involve the slotting allowances mechanism under the consignment with revenue sharing.
Databáze: Networked Digital Library of Theses & Dissertations