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Q1(Year 2015)
ISSN : 1026-3098
e-ISSN : 2345-3605
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Publication Information : Volume 23 - Number 5 - Successive Number 5
Type : Article
Topics of Paper : Transaction on Civil Engineering
English Title : Pricing and Ordering under Trade Promotion, Brand Competition and Demand Uncertainty
English Abstract : In practice,many manufacturers offer trade promotion to retailers to induce demand. It is also common for a retailer to sell products from competing manufacturers. This paper considers a two-echelon supply chain where two manufacturers provide a trade promotion to a retailer and the retailer faces uncertain and price-dependent demand.In the model, the manufacturers determine wholesale prices and the retailer determines retail price and order quantity to maximize their own profits. An algorithm based on nonlinear optimization is provided to solve the problem. We compare three trade promotions under brand competition: off-invoice, scan-back and buy-back policies, and discuss the effects of trade promotions on decisions and profits.The results indicate that the manufacturers and retailer prefer the buy-back policy over the off-invoice and scan-back policies. The retailer’s profit will increase and the manufacturers’ profits will decrease as the brand substitution effect increases. Also, the manufacturers will raise their wholesale prices but the retailer will reduce the retail price and order quantity when the brand substitution rate increases.
English Keywords : pricing; inventory;brand competition; demand uncertainty; piecewise nonlinear
Refrences :
Number Of Pages :
From 2407 to 2415


Authors :
The AuthorAuthor SequenceOrganizationOrganization ( english )AffiliationEmailEducation
Prof. Yu-Chung Tsao
(Author)
1Department of Industrial Management, National Taiwan University of Science and Technology, Taipei, Taiwan Professoryctsao@mail.ntust.edu.tw 
Published Issues
2017
Transactions on Civil Engineering
Transactions on Mechanical Engineering
Transactions on Industrial Engineering
2016
2015
Transactions on Civil Engineering
Transactions on Mechanical Engineering
Transactions on Chemistry and Chemical Engineering
Transactions on Computer Science & Engineering and Electrical Engineering
Transactions on Industrial Engineering
Transactions on Nanotechnology
2014
Transactions on Civil Engineering
Transactions on Mechanical Engineering
Transactions on Chemistry and Chemical Engineering
Transactions on Computer Science & Engineering and Electrical Engineering
Transactions on Industrial Engineering
Transactions on Nanotechnology
2013
Transactions on Civil Engineering
Transactions on Mechanical Engineering
Transactions on Chemistry and Chemical Engineering
Transactions on Computer Science & Engineering and Electrical Engineering
Transactions on Industrial Engineering
Transactions on Nanotechnology

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