Coordination of Supply Chain with Advertise-and-Price-Setting Newsvendor
In this paper, we study 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 selling price and having shortage penalty. When the retailer behaving as a newsvendor faces stochastic advertisement and price sensitive demands, she has to make the advertising, pricing and ordering decisions before the demand is realized. We first establish the centralized model and prove that the supply chain can not be coordinated with the revenue sharing contract. We then show quantity discount contract can coordinate the supply chain and testify the special quantity discount contract can not coordinate our supply chain setting that was used in 8 to coordinate the newsvendor with demand dependent on price and effort. Finally, we prove the revenue and loss sharing contract presented in 12 coordinate the newsvendor with demand dependent on advertising expenditure also can not coordinate our supply chain setting and propose a contract called improved revenue and loss sharing contract which coordinates the decentralized supply chain.
Supply chain coordination Advertising expenditure Revenue and loss sharing policy
Tie Wang Qiying Hu
Faculty of Mathematics and Phd Candidate in Management Science and Engineering, Liaoning University, Department of Management Science, Fudan University, Shanghai, 200433, China qyhu@fudan.edu.cn
国际会议
2011 China Control and Decision Conference(2011中国控制与决策会议 CCDC)
四川绵阳
英文
885-890
2011-05-23（万方平台首次上网日期，不代表论文的发表时间）