RT info:eu-repo/semantics/article
T1 Vendor Management Inventory with Consignment contracts and the benefits of cooperative advertising
A1 De Giovanni, Pietro
A1 Karray, Salma
A1 Martín Herrán, Guiomar
AB Most of the cooperative advertising literature has focused on studying theeffects of such programs considering marketing variables. This paperintegrates production and inventory management with pricing and advertisingconsiderations to assess the effects of cooperative advertising programs inbilateral monopolies. We consider a supply chain where a Vendor ManagedInventory (VMI) along with a consignment contract is implemented tocoordinate the chain. We develop and solve a differential model for twogames. The first one is a benchmark scenario where no cooperativeadvertising is offered, while the manufacturer offers the cooperativeprogram in the second game. The main results show that cooperativeadvertising programs, usually considered as successful marketinginitiatives, can be very difficult to implement in a supply chainundertaking a VMI policy with a consignment contract, in which operationsand marketing interface in taken into account. A cooperative program mainlyhurts the manufacturer's profits, and can be profit-Pareto-improving only ina few cases. Although the retailer is generally willing to receive a supportfrom the manufacturer, she can opt for a non-cooperative program when thelargest part of the supply chain profits goes to the manufacturer.
YR 2019
FD 2019
LK http://uvadoc.uva.es/handle/10324/31976
UL http://uvadoc.uva.es/handle/10324/31976
LA eng
NO European Journal of Operational Research, 272, 465-480, 2019
DS UVaDOC
RD 17-jul-2024