DocumentCode
2285077
Title
The determination of channel product transfer price under different cost functions
Author
Ren Fang-xu ; Zhang Ren-jun
Author_Institution
Sch. of Manage., Zhongyuan Univ. of Technol., Zhengzhou, China
fYear
2009
fDate
14-16 Sept. 2009
Firstpage
445
Lastpage
449
Abstract
In a two-echelon supply chain with a manufacturer and n-1 sellers, first of all, the paper proves the conclusion that the channel product transfer price will not make the profit of every member in the supply chain maximum when the supply chain achieves profit maximization, in turn from the perspective of the profit distribution, according to the principle that the unit product cost´s profits are equal, puts forward the method of determining the channel product transfer pricing under two cases of the cost functions of the supply chain members known and unknown, and gives the corresponding formula, thus makes profits distribution among members in the supply chain fair and reasonable, which will urge every member in supply chain both production enthusiasm and sale enthusiasm.
Keywords
costing; optimisation; pricing; profitability; supply chains; channel product transfer pricing; cost functions; production enthusiasm; profit distribution; profit maximization; profits distribution; sale enthusiasm; two-echelon supply chain; Conference management; Cost function; Engineering management; Marketing and sales; Monopoly; Pricing; Production; Supply chain management; Supply chains; Technology management; channel product; cost function; profit; supply chain; transfer price;
fLanguage
English
Publisher
ieee
Conference_Titel
Management Science and Engineering, 2009. ICMSE 2009. International Conference on
Conference_Location
Moscow
Print_ISBN
978-1-4244-3970-6
Electronic_ISBN
978-1-4244-3971-3
Type
conf
DOI
10.1109/ICMSE.2009.5317385
Filename
5317385
Link To Document