Collaborative Promotions Optimizing Retail Supply Chains with Upstream Informato

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Lecture Notes in Economics and Mathematical Systems
              Volume              6432010
Collaborative PromotionsOptimizing Retail Supply Chains with Upstream Informaton Sharing Authors:

• Daniela Wiehenbrauk
• …show all 1hide
  

ISBN: 978-3-642-13392-3 (Print) 978-3-642-13393-0  (Online)

Optimizing Retail Supply Chains with Upstream Information Sharing

Series: Lecture Notes in Economics and Mathematical Systems, Vol. 643

Wiehenbrauk, Daniela

2010, XX, 153 p. 46 illus.

(gross) price
ISBN 978-3-642-13393-0

  Immediately available per PDF-download (no DRM, watermarked)

About this book

• Presents a novel approach to improving supply chain efficiency by upstream information sharing between retailers and manufactures
•                                         Includes joint pricing and an inventory model
•                                         Describes the development of a model and proof of a mixed strategy equilibrium, allowing two players to capture observed market dynamics
•                                         Empirical data analysis
  

Promotions are at the same time beloved and feared by both food retailers and branded goods manufacturers in today’s retail environment. Beloved because they attract smart customers and generate an immediate effect on a brand’s sale. Feared because there is uncertainty about the competitors’ behavior and the actual customer demand leading to high forecast errors. For the retailer, this results in a doom loop of over- or understocking with high inventory costs in the supply chain. Collaboration between retailers and the manufacturer disentangles the doom loop. The thesis reveals the appropriate kind and timing of information and develops a so called Competition Index. Inventory in the supply chain is eliminated and the customer is served better at a lower price. Based on a joint inventory and pricing model and an empirical analysis, it shows that the supply chain efficiency gains from collaborative promotions result in a win for customers, retailers and the manufacturer.

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