Coordinating Buyer-Seller Transactions Across Multiple Products

Rajeev Kohli and Heungsoo Park
Additional contact information
Rajeev Kohli: Graduate School of Business, Columbia University, New York, New York 10027
Heungsoo Park: Yonsei University, Seoul 120-749, Korea

Management Science, 1994, vol. 40, issue 9, 1145-1150

Abstract: Joint ordering policies are examined as a method for reducing the transactions cost for multiple products sold by a seller to a homogeneous group of buyers. The problem of determining efficient joint ordering policies has the same structure as the previously-examined problem of determining the efficient ordering policy for a single product. Efficient joint lot-sizes are independent of prices, and are supported by a range of average-unit prices that permit every possible allocation of the transactions-cost saving between the buyer and the seller. Product bundling supports efficient joint orders across products, just as a quantity discount supports efficient transactions for a single product.

Keywords: marketing; buyer-seller interaction; product bundling; inventory models; transactions cost (search for similar items in EconPapers)
Date: 1994
References: Add references at CitEc
Citations: View citations in EconPapers (17)

Downloads: (external link)
http://dx.doi.org/10.1287/mnsc.40.9.1145 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inm:ormnsc:v:40:y:1994:i:9:p:1145-1150

Access Statistics for this article

More articles in Management Science from INFORMS Contact information at EDIRC.
Bibliographic data for series maintained by Chris Asher ().