• 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