Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competition
This article studies the manufacturer's pricing strategy in a supply chain with a single manufacturer and two competing retailers. The manufacturer, as a Stackelberg leader specifies wholesale prices to two retailers who face advertisement dependent demand. Based on this gaming structure, two m...
| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Growing Science
2014-06-01
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| Series: | International Journal of Industrial Engineering Computations |
| Subjects: | |
| Online Access: | http://www.growingscience.com/ijiec/Vol5/IJIEC_2014_6.pdf |
| _version_ | 1818244252025487360 |
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| author | B. C. Giri S. Sharma |
| author_facet | B. C. Giri S. Sharma |
| author_sort | B. C. Giri |
| collection | DOAJ |
| description | This article studies the manufacturer's pricing strategy in a supply chain with a single manufacturer and two competing retailers. The manufacturer, as a Stackelberg leader specifies wholesale prices to two retailers who face advertisement dependent demand. Based on this gaming structure, two mathematical models are developed - the cooperative advertising model where manufacturer shares a fraction of retailers' advertising costs and the non-cooperative advertising model where manufacturer does not share any retailer's advertising expenses. The optimal strategies of the manufacturer and retailers are determined and a numerical example is taken to illustrate the theoretical results derived. We show that cooperative advertising policy is beneficial not only for the participating entities but also for the entire supply chain. |
| first_indexed | 2024-12-12T14:14:04Z |
| format | Article |
| id | doaj.art-43a310a20f9a475fb44cfd784da507c9 |
| institution | Directory Open Access Journal |
| issn | 1923-2926 1923-2934 |
| language | English |
| last_indexed | 2024-12-12T14:14:04Z |
| publishDate | 2014-06-01 |
| publisher | Growing Science |
| record_format | Article |
| series | International Journal of Industrial Engineering Computations |
| spelling | doaj.art-43a310a20f9a475fb44cfd784da507c92022-12-22T00:21:57ZengGrowing ScienceInternational Journal of Industrial Engineering Computations1923-29261923-29342014-06-015347349410.5267/j.ijiec.2014.3.001Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competitionB. C. Giri S. SharmaThis article studies the manufacturer's pricing strategy in a supply chain with a single manufacturer and two competing retailers. The manufacturer, as a Stackelberg leader specifies wholesale prices to two retailers who face advertisement dependent demand. Based on this gaming structure, two mathematical models are developed - the cooperative advertising model where manufacturer shares a fraction of retailers' advertising costs and the non-cooperative advertising model where manufacturer does not share any retailer's advertising expenses. The optimal strategies of the manufacturer and retailers are determined and a numerical example is taken to illustrate the theoretical results derived. We show that cooperative advertising policy is beneficial not only for the participating entities but also for the entire supply chain.http://www.growingscience.com/ijiec/Vol5/IJIEC_2014_6.pdfSupply chainManufacturerRetailerAdvertisementStackelberg |
| spellingShingle | B. C. Giri S. Sharma Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competition International Journal of Industrial Engineering Computations Supply chain Manufacturer Retailer Advertisement Stackelberg |
| title | Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competition |
| title_full | Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competition |
| title_fullStr | Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competition |
| title_full_unstemmed | Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competition |
| title_short | Manufacturer's pricing strategies in cooperative and non-cooperative advertising supply chain under retail competition |
| title_sort | manufacturer s pricing strategies in cooperative and non cooperative advertising supply chain under retail competition |
| topic | Supply chain Manufacturer Retailer Advertisement Stackelberg |
| url | http://www.growingscience.com/ijiec/Vol5/IJIEC_2014_6.pdf |
| work_keys_str_mv | AT bcgiri manufacturerspricingstrategiesincooperativeandnoncooperativeadvertisingsupplychainunderretailcompetition AT ssharma manufacturerspricingstrategiesincooperativeandnoncooperativeadvertisingsupplychainunderretailcompetition |