On the interaction between retailers inventory policies and manufacturer trade deals in response to supply-uncertainty occurrences

F. Arcelus (), T. Pakkala and G. Srinivasan ()

Annals of Operations Research, 2006, vol. 143, issue 1, 45-58

Abstract: This paper models a retailer’s response to temporary manufacturer’s trade deals characterized by a time interval of random length and of uncertain duration. Uncertainty is handled primarily through the establishment of a reordering point, which serves as a trigger mechanism for new special orders. The timing at which this point is activated becomes another decision variable to be determined optimally. The model generates relatively easy-to-implement ordering policies, applicable to any probability distribution. Copyright Springer Science + Business Media, Inc. 2006

Date: 2006
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DOI: 10.1007/s10479-006-7371-4

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