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Retailer's order policy and channel coordination question based on cooperative advertising

LU Yuan-yuan1,2, LI Ming-fang2   

  1. 1. Mathematical College, Jilin Normal University, Siping 136000, Jilin, China;2. Business School, Renmin University of China, Beijing 100872, China
  • Received:1900-01-01 Revised:1900-01-01 Online:2006-10-24 Published:2006-10-24
  • Contact: LU Yuan-yuan

Abstract: Cooperative advertising strategy, retailer's order policy and channel coordination problem of a supply chain system formed by one manufacturer and multi-retailers was studied under uncertain demand. Cooperative advertising models under both a decentralized system and centralized system were given, and the combined contract including advertising allowance contract and buy back contract were put forward. The necessary condition to ensure channel coordination and the method to get the optimal contract parameters were given. Finally, a numerical example was carried out based on one manufacturer and two retailers, and the influence caused by parameter variances on the optimal strategy and combined contract were analyzed.

Key words: combined contract , channel coordination, cooperative advertising, supply chain

CLC Number: 

  • F224
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