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Author:Wang, Y.
Gerchak, Y.
Title:Supply Chain Coordination when Demand Is Shelf-Space Dependent
Journal:Manufacturing & service operations management
2001 : WINTER, VOL. 3:1, p. 82-87
Index terms:SUPPLY CHAIN MANAGEMENT
DEMAND
MANUFACTURING INDUSTRY
WHOLESALING
RETAILING
Language:eng
Abstract:Consider a manufacturer or wholesaler who supplies some item to retailers facing demand rates that depend on the shelf or display space that is devoted to that product by themselves and their competitors. The manufacturer, via the use of financial levers at her disposal, wishes to coordinate this decentralized chain while making a profit. The authors model the physical scenario as one of constant displayed inventory level (on which demand rate depends positively) and continuous replenishment. With a single retailer, the authors show that to coordinate the channel and make a profit the manufacturer needs to augment the wholesale price lever by another-an inventory holding costs subsidy offered to the retailer.
SCIMA record nr: 225789
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