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Authors: Wenting Pan ; Yung-Jae Lee and Tina Zhang

Affiliation: Saint Mary’s College of California, United States

Keyword(s): Price Promotion, Supply Chain, EOQ, EPQ.

Related Ontology Subjects/Areas/Topics: Applications ; e-Business ; Enterprise Information Systems ; Logistics ; Operational Research ; Supply Chain Management

Abstract: We consider a supply chain network where there is one manufacturer and multiple identical retailers in a consumer non-durable market. The retail purchase price is exogenous, and demand is deterministic. The retailers apply the Economic Order Quantity (EOQ) model to minimize the total cost. In observation of the manufacturer’s periodic instantaneous promotion, the retailers would place a one-time order from the manufacturer to take advantage of the deal during the promotion period. The objective of this paper is to examine the impact this price promotion has on the manufacturer’s performance. We find that this promotion policy has a negative impact on the manufacturer’s performance. Interestingly, we also find that this negative impact is less damaging when the utilization of the facility is lower.

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Paper citation in several formats:
Pan, W.; Lee, Y. and Zhang, T. (2013). The Impact the Price Promotion Has on the Manufacturer’s Performance. In Proceedings of the 2nd International Conference on Operations Research and Enterprise Systems - ICORES; ISBN 978-989-8565-40-2; ISSN 2184-4372, SciTePress, pages 343-346. DOI: 10.5220/0004341103430346

@conference{icores13,
author={Wenting Pan. and Yung{-}Jae Lee. and Tina Zhang.},
title={The Impact the Price Promotion Has on the Manufacturer’s Performance},
booktitle={Proceedings of the 2nd International Conference on Operations Research and Enterprise Systems - ICORES},
year={2013},
pages={343-346},
publisher={SciTePress},
organization={INSTICC},
doi={10.5220/0004341103430346},
isbn={978-989-8565-40-2},
issn={2184-4372},
}

TY - CONF

JO - Proceedings of the 2nd International Conference on Operations Research and Enterprise Systems - ICORES
TI - The Impact the Price Promotion Has on the Manufacturer’s Performance
SN - 978-989-8565-40-2
IS - 2184-4372
AU - Pan, W.
AU - Lee, Y.
AU - Zhang, T.
PY - 2013
SP - 343
EP - 346
DO - 10.5220/0004341103430346
PB - SciTePress