Abstract:We examine the trade-offs between demand information and inventory in a distribution channel. While better demand information has a positive direct effect for the manufacturer in improving the efficiency of holding inventory in a channel, it can also have the strategic effect of increasing retail prices and limiting the extraction of retail profits. Having inventory in the channel can help the manufacturer to manage retail pricing behavior while better extracting retail surplus. Thus, even if the information s… Show more
“…Heide and John (1992); Heide (1994) Weitz and Jap (1995) Lal and Narasimhan (1996);Iyer, Narasimhan, and Niraj (2007) Kumar, Scheer and Steenkamp (1998);Scheer, Miao, andGarrett (2010) Dong, Shankar, andDresner (2007) McGuire and Staelin (1983) Note: We only report issues, methods or data sources that were at least mentioned by two interviewed experts. " √ " reflects topics explicitly mentioned by the scholars.…”
“…Heide and John (1992); Heide (1994) Weitz and Jap (1995) Lal and Narasimhan (1996);Iyer, Narasimhan, and Niraj (2007) Kumar, Scheer and Steenkamp (1998);Scheer, Miao, andGarrett (2010) Dong, Shankar, andDresner (2007) McGuire and Staelin (1983) Note: We only report issues, methods or data sources that were at least mentioned by two interviewed experts. " √ " reflects topics explicitly mentioned by the scholars.…”
“…Similarly, Iyer and Bergen (1997) found that manufacturers may not be better off under quick-response channel arrangements and that rigid rather than flexible terms may improve quick-response arrangements. In a setting of a single manufacturer and multiple competing retailers, Iyer et al (2007) investigated how improved information affects the manufacturer's preference regarding where to keep the inventory. They found that, with more reliable information, the manufacturer prefers to hold the inventory only if the retail market is very competitive.…”
“…Corbett suggested that consignment stock helped reduce cycle stock by providing the supplier with an additional incentive to decrease batch size [10]. Situations of different information and the retailer s in channel were showed too [11].…”
The lead-time for the retailer's inventory system may be changed with different suppliers in china's low technology industries. A multi-agent simulation system is proposed to simulate this category of dynamic supply chain. In the simulation system, the retailer's stock was controlled by (S, s) policy, and then four categories of supply chain scenarios were suggested. Four propositions were achieved by the simulation system. With the decrease of s, the retailer's profit has different tendency under the four scenarios. Optimal (nearoptimal) s, correspond to maximum profits, shows significant difference in the four scenarios. The results of the paper demonstrate that s can be significantly changed and financial benefits can be achieved while the retailer cooperates with different suppliers under the four supply chains
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