Profit optimization with coexisting buy-back and wholesale-price contracts

Author

Fujiwara, Kaori ; Koide, Akio

Author_Institution

Tokyo Res. Lab., IBM Japan Ltd., Kanagawa

fYear

2008

fDate

June 30 2008-July 2 2008

Firstpage

1

Lastpage

5

Abstract

This paper gives a model for profit optimization by a distributor when buy-back and wholesale-price contracts coexist. It is applicable to industries such as fashion, games, and publishing industries, where many new products are shipped to the market every day and with very short lives. We provide a method to determine the optimal sizes of push-type shipments based on retailer behavior and the uncertainties of consumer demand forecasts.

Keywords

consumer behaviour; goods distribution; optimisation; pricing; profitability; retailing; supply chain management; buy-back contract; consumer demand forecasts; profit optimization; push-type shipments; retailer behavior; wholesale-price contracts; Books; Clothing industry; Contracts; Costs; Demand forecasting; Game theory; Marine vehicles; Marketing and sales; Shipbuilding industry; Toy industry; buy-back contract; managerial decision making under uncertainty; supply chain coordination; wholesale-price contract;

fLanguage

English

Publisher

ieee

Conference_Titel

Service Systems and Service Management, 2008 International Conference on

Conference_Location

Melbourne, VIC

Print_ISBN

978-1-4244-1671-4

Electronic_ISBN

978-1-4244-1672-1

Type

conf

DOI

10.1109/ICSSSM.2008.4598542

Filename

4598542