Consignment contracts with retail competition

Adida, Elodie; Ratisoontorn, Nantaporn

doi:10.1016/j.ejor.2011.05.059

Cited by 66 publications

(47 citation statements)

References 44 publications

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“…However, fine adjustments of bonus parameters can bring the channel close to full coordination. Adida and Ratisoontorn (2011) investigate how competition among retailers influences the supply chain decisions and profits under consignment price contract and a consignment contract with revenue share. Chen and Liu (2008) analyze an optimal consignment policy comprising a fixed fee and a per-unit commission, they focus on determining the optimal consignment policy for a manufacturer and the resulting supply-chain coordination.…”

Section: Literature Reviewmentioning

confidence: 99%

Benefit and risk analysis of consignment contracts

Wei

Wang

2015

Ann Oper Res

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Consignment contracts are widely implemented in virtual market. We consider a supplier produces product and sells it to market through a retailer by consignment contract. In a unified model assumption, considering random demand and customers' uncertain return behavior, we focus on two popular consignment contracts: vendor managed consignment inventory contract and consignment contract with revenue sharing. Comparing analytical results between the two contracts, we find that (1) the retailer and whole supply chain will benefit more from the consignment contract with revenue sharing, (2) the supplier will prefer to vendor managed consignment inventory contract, (3) both the retailer and supply chain will share a higher risk under the consignment contract with revenue sharing, the supplier's shares of risk and profit highly depend on his share of the total expected cost, (4) all the profit and risk functions are decrease in uncertainty of customer return. We believe that these managerial insights can advance the understanding about use of the two consignment contracts in supply chain management with both benefit and risk considerations.

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Section: Literature Reviewmentioning

confidence: 99%

Benefit and risk analysis of consignment contracts

Wei

Wang

2015

Ann Oper Res

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“…Only a few papers have studied the effect of competition among suppliers (Wang, 2006;Adida and Ratisoontorn, 2011), as we do here. Furthermore, whereas most work thus far has assumed that supply chain members are risk-neutral, we study the influence of different risk attitudes on the supply chain performance.…”

Section: Accepted Manuscriptmentioning

confidence: 99%

Consignment contract for mobile apps between a single retailer and competitive developers with different risk attitudes

Avinadav

Chernonog

Perlman‬‏

2015

European Journal of Operational Research

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“…Adida [17] depicts the retailer's demand as multiplicative form and models the expected demand as an exponential function of both prices, that is…”

Section: Literature Reviewmentioning

confidence: 99%

“…We thus adopt multiplicative stochastic demand in our paper. Following [17], the demand for the product at retailer i, denoted by D i (p) where p = (p 1 , p 2 ), as:…”

Section: A Assumption and Demand Modelmentioning

confidence: 99%

The newsvendor problem with retail competition

Liu

Yan

Zhang

2012

2012 24th Chinese Control and Decision Conference (CCDC)

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This paper considers the newsvendor problem with two competing retailers who face price-sensitive and uncertain demand. There are two questions: (1) how to model the price-dependent stochastic demand and retail competition and (2) how to derive the combined pricing and inventory solutions. In order to answer above problems, we adopt multiplicative demand function and model the expected demand as an exponential function of both retailers' prices, then it is concluded that each retailer's best response price is unique and independent of the competitor's price decision, and each retailer's best response stocking factor is uniquely determined when the demand distribution satisfying the IFR property.

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Consignment contracts with retail competition

Cited by 66 publications

References 44 publications

Benefit and risk analysis of consignment contracts

Benefit and risk analysis of consignment contracts

Consignment contract for mobile apps between a single retailer and competitive developers with different risk attitudes

The newsvendor problem with retail competition

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