The profit-maximization model for a multi-item distribution channel

Jen-Ming Chen and Tsung-Hui Chen

Transportation Research Part E: Logistics and Transportation Review, 2007, vol. 43, issue 4, 338-354

Abstract: This study focused on an area of emerging research: managing a multi-product and multi-echelon supply chain which produces and sells deteriorating goods in the marketplace. We formulated four profit-maximization models by considering the effects of channel coordination and a joint replenishment program on the supply-side cost control, taking into account the effect of the pricing scheme on demand and revenue increments. In addition, a profit-sharing mechanism based on channel rebates is proposed, which leads to Pareto improvements among the channel participants.

Keywords: Joint; replenishment; Channel; coordination; Inventory; Pricing (search for similar items in EconPapers)
Date: 2007
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Citations: View citations in EconPapers (11)

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