Pricing and allocation of retail space with one radio frequency identification enabled supplier and one non-RFID enabled supplier
We consider a retailer with one radio frequency identification (RFID) enabled supplier and one non-RFID enabled supplier. Assuming vendor managed inventory, we address the problem of allocation and pricing of the retail shelf-space. Using a Stackelberg game where the retailer leads, we observe that the RFID technology provides a competitive advantage for the RFID enabled supplier. Further, high product substitutability, high demand uncertainty, low tag prices, and low restocking costs favour the RFID enabled supplier. As shelf-space is capacitated with large fixed costs and its demand varies over time, shelf-space management addresses many of the same challenges as revenue management.
Year of publication: |
2009
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Authors: | Szmerekovsky, Joseph G. ; Tilson, Vera ; Zhang, Jiang |
Published in: |
International Journal of Revenue Management. - Inderscience Enterprises Ltd, ISSN 1474-7332. - Vol. 3.2009, 1, p. 37-55
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Publisher: |
Inderscience Enterprises Ltd |
Subject: | RFID | radio frequency identification | revenue management | shelf space pricing | shelf space allocation | technologically different suppliers | VMI | vendor managed inventory | retail space | shelf space management |
Saved in:
Online Resource