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We analyze a supply chain consisting of a supplier and a retailer. The supplier's unit production cost, which characterizes his type, is only privately known to him. When trading with the retailer, the supplier demands a reservation profit that depends on his unit production cost. We model this...
Persistent link: https://www.econbiz.de/10012755263
This paper investigates the dynamic inventory model for the case when production in a period is restricted to a finite set of specified values. The model allows the production rate to be any value in the set (0, P, 2P, ..., mP), where m is a non-negative integer. It is assumed that the setup...
Persistent link: https://www.econbiz.de/10014198992
We deal with a single or parallel machine manufacturing system with convex cost of holding and backlogging and develop a new rigorous analysis to address the problem. We provide the results needed for the vanishing discount approach used for aour analysis. In particular, we show that one can go...
Persistent link: https://www.econbiz.de/10014046437
We consider a cooperative advertising channel consisting of a manufacturer selling its product through a retailer in … competition with another independent retailer. The manufacturer subsidizes its retailer's advertising only when a certain …
Persistent link: https://www.econbiz.de/10013133537
Cooperative advertising is an incentive offered by a manufacturer to influence retailers' promotional decisions. We … Stackelberg leader announces his wholesale prices and his shares of retailers' advertising costs, and the retailers in response … play a Nash differential game in choosing their optimal retail prices and advertising efforts over time. We obtain the …
Persistent link: https://www.econbiz.de/10013122003
-Arrow advertising model. The optimal control is the rate of advertising expenditure required to maximize the present value of net profit … streams over an infinite horizon subject to a replenishable budget. It is shown that an equilibrium level of advertising …
Persistent link: https://www.econbiz.de/10013158771
Cooperative advertising is a key incentive offered by a manufacturer to influence retailers' promotional decisions. We … study cooperative advertising in a dynamic retail duopoly where a manufacturer sells his product through two competing … retailers. We model the problem as a Stackelberg differential game in which the manufacturer announces his shares of advertising …
Persistent link: https://www.econbiz.de/10012832937
Cooperative advertising is an important mechanism used by manufacturers to influence retailers' promotional decisions …. In a typical arrangement, the manufacturer agrees to reimburse a fraction of a retailer's advertising cost, known as the … optimal advertising efforts. We obtain feedback Stackelberg strategies consisting of manufacturer's subsidy rates and …
Persistent link: https://www.econbiz.de/10012832940
We propose a model to assess the value of a distributor in a dynamic stochastic cooperative advertising supply chain in …, the distributor also intermediates the pricing and advertising decisions between the manufacturer and the retailer. For … to the case of no distributor. Thirdly, as the distributor saves on the transport cost, the marginal advertising cost to …
Persistent link: https://www.econbiz.de/10012837118
retailers. The manufacturer decides on its support for the retailers' advertising activities by announcing cooperative … advertising subsidies called “participation rates.” The retailers compete for market share by selecting advertising efforts. We … find that the manufacturer should offer the cooperative advertising policy to only one retailer and even then, only when a …
Persistent link: https://www.econbiz.de/10012838896