Incentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailers
Abstract This paper proposes a new motivation for information sharing in a decentralized channel consisting of a single manufacturer and two competing retailers. The manufacturer provides a common product to the retailers at the same wholesale price. Both retailers add their own values to the produc...
| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Islamic Azad University
2017-09-01
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| Series: | Journal of Industrial Engineering International |
| Subjects: | |
| Online Access: | http://link.springer.com/article/10.1007/s40092-017-0225-7 |
| _version_ | 1818615651194896384 |
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| author | Mostafa Setak Hajar Kafshian Ahar Saeed Alaei |
| author_facet | Mostafa Setak Hajar Kafshian Ahar Saeed Alaei |
| author_sort | Mostafa Setak |
| collection | DOAJ |
| description | Abstract This paper proposes a new motivation for information sharing in a decentralized channel consisting of a single manufacturer and two competing retailers. The manufacturer provides a common product to the retailers at the same wholesale price. Both retailers add their own values to the product and distribute it to consumers. Factors such as retail prices, values added to the product, and local advertising of the retailers simultaneously have effect on market demand. Each retailer has full information about the own added value which is unknown to the manufacturer and other retailer. The manufacturer uses a cooperative advertising program for motivating the retailers to disclose their private information. A numerical study is presented to compare different scenarios of information sharing. Computational results show that there is a condition in which full information sharing is beneficial for all members of the supply chain through cooperative advertising program and, therefore, retailers have enough incentive to disclose their cost information to the manufacturer. |
| first_indexed | 2024-12-16T16:37:17Z |
| format | Article |
| id | doaj.art-61c886fd1dca4576b6b058060fd98b56 |
| institution | Directory Open Access Journal |
| issn | 1735-5702 2251-712X |
| language | English |
| last_indexed | 2024-12-16T16:37:17Z |
| publishDate | 2017-09-01 |
| publisher | Islamic Azad University |
| record_format | Article |
| series | Journal of Industrial Engineering International |
| spelling | doaj.art-61c886fd1dca4576b6b058060fd98b562022-12-21T22:24:25ZengIslamic Azad UniversityJournal of Industrial Engineering International1735-57022251-712X2017-09-0114226528010.1007/s40092-017-0225-7Incentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailersMostafa Setak0Hajar Kafshian Ahar1Saeed Alaei2Department of Industrial Engineering, K. N. Toosi University of TechnologyDepartment of Industrial Engineering, K. N. Toosi University of TechnologyDepartment of Industrial Engineering, K. N. Toosi University of TechnologyAbstract This paper proposes a new motivation for information sharing in a decentralized channel consisting of a single manufacturer and two competing retailers. The manufacturer provides a common product to the retailers at the same wholesale price. Both retailers add their own values to the product and distribute it to consumers. Factors such as retail prices, values added to the product, and local advertising of the retailers simultaneously have effect on market demand. Each retailer has full information about the own added value which is unknown to the manufacturer and other retailer. The manufacturer uses a cooperative advertising program for motivating the retailers to disclose their private information. A numerical study is presented to compare different scenarios of information sharing. Computational results show that there is a condition in which full information sharing is beneficial for all members of the supply chain through cooperative advertising program and, therefore, retailers have enough incentive to disclose their cost information to the manufacturer.http://link.springer.com/article/10.1007/s40092-017-0225-7CoordinationInformation sharingVertical cooperative advertisingCompeting retailersGame theory |
| spellingShingle | Mostafa Setak Hajar Kafshian Ahar Saeed Alaei Incentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailers Journal of Industrial Engineering International Coordination Information sharing Vertical cooperative advertising Competing retailers Game theory |
| title | Incentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailers |
| title_full | Incentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailers |
| title_fullStr | Incentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailers |
| title_full_unstemmed | Incentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailers |
| title_short | Incentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailers |
| title_sort | incentive mechanism based on cooperative advertising for cost information sharing in a supply chain with competing retailers |
| topic | Coordination Information sharing Vertical cooperative advertising Competing retailers Game theory |
| url | http://link.springer.com/article/10.1007/s40092-017-0225-7 |
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