Title :
Channel coordination under price protection
Author_Institution :
Sch. of Manage., Fudan Univ., Shanghai, China
Abstract :
In current market competition companies face with short product life cycle, high demand uncertainty and drastic declines of product values. This study analyses the price protection policy in channel coordination and proposes a two-period dynamic model of optimal price protection rate based on the single ordering. The result shows that, through setting reasonable the wholesale price and the price protection rate, optimal order quantity by the retailer can be achieved. Furthermore, The policy optimizes the total benefit of channel alliance to obtain the win-win pattern, and finally realize channel coordination.
Keywords :
commerce; product life cycle management; channel alliance; channel coordination; demand uncertainty; market competition; optimal order quantity; optimal price protection rate; price protection policy; product life cycle; two-period dynamic model; wholesale price; win-win pattern; Costs; Forward contracts; Manufacturing; Marketing and sales; Marketing management; Monitoring; Performance gain; Pricing; Protection; Uncertainty; Channel coordination; incentive mechanism; price protection;
Conference_Titel :
Industrial Engineering and Engineering Management, 2008. IEEM 2008. IEEE International Conference on
Conference_Location :
Singapore
Print_ISBN :
978-1-4244-2629-4
Electronic_ISBN :
978-1-4244-2630-0
DOI :
10.1109/IEEM.2008.4738037
