Collaborative Promotions: Optimizing Retail Supply Chains by Daniela Wiehenbrauk

By Daniela Wiehenbrauk

Promotions are whilst loved and feared by means of either meals outlets and branded items brands in today’s retail setting. loved simply because they allure shrewdpermanent consumers and generate an instantaneous influence on a brand’s sale. Feared simply because there's uncertainty concerning the opponents’ habit and the particular client call for resulting in excessive forecast error. For the shop, this leads to a doom loop of over- or understocking with excessive stock bills within the offer chain.

Collaboration among outlets and the producer disentangles the doom loop. The thesis unearths the perfect style and timing of data and develops a so known as pageant Index. stock within the provide chain is eradicated and the client is served greater at a lower cost. in accordance with a joint stock and pricing version and an empirical research, it exhibits that the provision chain potency profits from collaborative promotions bring about a win for purchasers, outlets and the producer.

Show description

Read or Download Collaborative Promotions: Optimizing Retail Supply Chains with Upstream Information Sharing: 643 (Lecture Notes in Economics and Mathematical Systems) PDF

Similar game theory books

The Evolution of Cooperation (Revised Edition)

Contributor notice: ahead through Richard Dawkins
-----------------------

The Evolution of Cooperation offers worthy insights into the age-old query of no matter if unforced cooperation is ever attainable. generally praised and much-discussed, this vintage ebook explores how cooperation can emerge in an international of self-seeking egoists-whether superpowers, companies, or individuals-when there's no primary authority to police their activities.

The challenge of cooperation is vital to many various fields. Robert Axelrod recounts the recognized computing device tournaments during which the “cooperative” software Tit for Tat recorded its wonderful victories, explains its software to a wide spectrum of matters, and indicates how readers can either follow cooperative rules to their very own lives and train cooperative ideas to others.

The Mathematics of Arbitrage (Springer Finance)

Evidence of the "Fundamental Theorem of Asset Pricing" in its basic shape by means of Delbaen and Schachermayer was once a milestone within the historical past of recent mathematical finance and now varieties the cornerstone of this booklet. places into e-book layout a chain of significant effects due commonly to the authors of this booklet. Embeds highest-level examine effects right into a remedy amenable to graduate scholars, with introductory, explanatory history.

Multicriteria Analysis: Applications to Water and Environment Management

Multicriteria research is likely one of the most vital fields of choice technological know-how. This publication provides an overview of the formula of a suitable version and offers a accomplished precis of the most well-liked tools for fixing multicriteria selection difficulties. as well as the classical method the booklet introduces fuzzy and stochastic technique, types with uncertainty, social selection and clash solution.

Extra resources for Collaborative Promotions: Optimizing Retail Supply Chains with Upstream Information Sharing: 643 (Lecture Notes in Economics and Mathematical Systems)

Example text

Therefore, extracting a specific retailer is not possible due to the similar market shares of the leading retailers (also see Chap. 6 for a detailed analysis). However, the definition of the Competition Index allows conclusions regarding how the average competitor behaves. 10 01 10 20 30 40 50 week Retailer A Retailer B Retailer C Retailer D Retailer E Fig. 5 Prices for a diapers brand at five major German retailers, 2003. 4 Research Questions and Methods The objective of this dissertation is to determine the value of upstream information sharing, in form of the Competition Index, for customers, retailers and a manufacturer.

Promotions and Inventory Sogomonian and Tang (1993) investigate the benefit of coordinating promotion and production decisions for a retailer. The decisions include the timing and level of a promotion as well as the order quantity. In order to evaluate the benefits of coordinated decisions, the authors formulate two problems: a baseline model, where the production and promotion decisions are made separately and an integrated model, where the two decisions are made jointly. A numerical example provides evidence that with the integrated approach, the net profit increases by 12%, which justifies the importance of coordinating promotion and production decisions.

Obviously a retailer promoting at a regular pattern is highly predictable to both its customers and its competitors. In terms of customer retention, this is positive: customers adapt to this cycle and the retailer wins them as so called “loyal customers” who purchase in promotions. In terms of competition, the pattern can have negative effects: the retailer is at the risk of being undercut. The impact of pattern promotions has been highlighted by Krishna (1994), but has otherwise received little attention in the literature.

Download PDF sample

Rated 4.38 of 5 – based on 14 votes