Coordination of Supply Chain with Advertise-Setting Newsvendor
This paper investigates the coordination of a decentralized supply chain in which a single manufacturer is selling a perishable product to a single retailer facing uncertain demand affected by her adverting expenditure and having shortage penalty.When the retailer behaving as a newsvendor faces stochastic advertisement-sensitive demands,she has to make the advertising and inventory decisions before the demand is realized.First,we establish that the supply chain can not be coordinated with the buy back,revenue sharing,and target rebate and quantity flexibility contract.Next,we show quantity discount contract can coordinate the supply chain and give a special quantity discount contract Finally,we present a contract called revenue and loss sharing contract which mitigates the effect of shortage penalty loss and coordinates the decentralized supply chain.
marketing and operations interface marketing and operations interface,supply chain coordination newsvendor model with advertising
Tie Wang Qiying Hu
School of Mathematics and School of Management Liaoning University and Shanghai University Shenyang School of Management Fudan University Shanghai,China
国际会议
The 2nd IEEE International Conference on Advanced Computer Control(第二届先进计算机控制国际会议 ICACC 2010)
沈阳
英文
391-395
2010-03-27(万方平台首次上网日期,不代表论文的发表时间)