DocumentCode :
2965445
Title :
Retailer´s Shelf-Space and Pricing Decisions under Revenue Sharing Contracts
Author :
Tan, Manyun ; Wang, Hexin
Author_Institution :
Sch. of Econ. & Manage., Beihang Univ., Beijing, China
fYear :
2011
fDate :
12-14 Aug. 2011
Firstpage :
1
Lastpage :
4
Abstract :
In some retail contexts, retailers can often stimulate product sales by offering a price discount or allocating more shelf or display space. The retailer´s shelf-space and pricing decisions can affect not only the retailer´s profitability but also the supplier´s profitability. This paper investigates the impact of revenue sharing contracts on the retailer´s shelf-space and pricing decisions. Consider a two-echelon supply chain with a supplier supplying a certain product to a retailer facing non-linear inventory holding costs and the customer demand that depends on both the price of the product and the shelf space allocated. We firstly provide the equilibrium of the optimal decisions of the retailer and the supplier when no revenue sharing contract is offered. Then we consider the case where the supplier replenishes the retailer´s shelf under a revenue sharing contract. It is shown that a properly designed revenue sharing contract can increase the profit of the manufacture, comparing to the benchmark case. Finally we conclude that revenue sharing contracts still can not coordinate the supply chain.
Keywords :
customer relationship management; inventory management; pricing; profitability; retailing; sales management; supply chain management; customer demand; display space; nonlinear inventory holding cost; price discount; pricing decision; product sales; retailer profitability; retailer shelf space; revenue sharing contract; supplier profitability; two echelon supply chain; Biological system modeling; Contracts; Economics; Marketing and sales; Pricing; Resource management; Supply chains;
fLanguage :
English
Publisher :
ieee
Conference_Titel :
Management and Service Science (MASS), 2011 International Conference on
Conference_Location :
Wuhan
Print_ISBN :
978-1-4244-6579-8
Type :
conf
DOI :
10.1109/ICMSS.2011.5998296
Filename :
5998296
Link To Document :
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