Unified discount pricing models of a two-echelon channel with a monopolistic manufacturer and heterogeneous retailers

Unified discount pricing models of a two-echelon channel with a monopolistic manufacturer and heterogeneous retailers

0.00 Avg rating0 Votes
Article ID: iaor20073049
Country: United Kingdom
Volume: 13
Issue: 2
Start Page Number: 143
End Page Number: 168
Publication Date: Mar 2006
Journal: International Transactions in Operational Research
Authors: ,
Keywords: financial
Abstract:

This paper considers a two-echelon channel in which a monopolistic manufacturer supplies a single product to multiple heterogeneous retailers who are in separate markets. The present paper studies the problem of how the manufacturer in a manufacturer-Stackelberg game designs a unified quantity-discount pricing scheme to improve the whole channel's profit as well as each partner's profit. Considered in the paper are two types of unified quantity-discount pricing schemes: the regular quantity-discount pricing scheme and the incremental volume discount pricing scheme. Each of the two types of schemes includes a single price-break discount policy and a non-linear quantity discount policy. Optimal solutions are derived and numerical examples presented to illustrate the efficiency of each discount policy.

Reviews

Required fields are marked *. Your email address will not be published.