TY - GEN
T1 - Impact of revenue sharing contracts on retailers' shelf space allocation
AU - Wang, Hexin
AU - Zhang, Chu
PY - 2010
Y1 - 2010
N2 - The retailer's shelf-space-allocation decision affects not only the retailer's profitability but also the supplier's. This paper studies channel coordination through revenue sharing (RS) contracts between a common supplier and two competing retailers in a two-echelon supply chain. The supplier, acting as a leader, grants the franchise to two retailers facing shelf-space-dependent demand. The supplier influences retailers' decisions by charging portions of the revenue in exchange for the reduction in wholesale price. To maximize their profitability, the two competing retailers determine the order quantities under the given contract terms. We then investigate how the partners make decisions under the RS contracts and provide the condition under which both retailers stay in competition. Lastly we explore when the supply chain could reach the efficiency as in a centralized one.
AB - The retailer's shelf-space-allocation decision affects not only the retailer's profitability but also the supplier's. This paper studies channel coordination through revenue sharing (RS) contracts between a common supplier and two competing retailers in a two-echelon supply chain. The supplier, acting as a leader, grants the franchise to two retailers facing shelf-space-dependent demand. The supplier influences retailers' decisions by charging portions of the revenue in exchange for the reduction in wholesale price. To maximize their profitability, the two competing retailers determine the order quantities under the given contract terms. We then investigate how the partners make decisions under the RS contracts and provide the condition under which both retailers stay in competition. Lastly we explore when the supply chain could reach the efficiency as in a centralized one.
KW - Revenue sharing contract
KW - Shelf space allocation
KW - Supplier competition
UR - https://www.scopus.com/pages/publications/84953734966
M3 - 会议稿件
AN - SCOPUS:84953734966
T3 - Logistics and Supply Chain Research in China - Proceedings of the 3rd International Conference on Logistics and Supply Chain Management 2010, ILS 2010
SP - 124
EP - 130
BT - Logistics and Supply Chain Research in China - Proceedings of the 3rd International Conference on Logistics and Supply Chain Management 2010, ILS 2010
A2 - Zhang, Henry
PB - Orient Academic Forum
T2 - 3rd International Conference on Logistics and Supply Chain Management 2010, ILS 2010
Y2 - 18 July 2010 through 22 July 2010
ER -