Document Type : Research Paper
Authors
Abstract
In this paper, we investigate a decentralized manufacturer-distributer supply chain. In addition to global advertisement, the manufacturer participates in the local advertising expenditures of distributer. Bi-level programming approach is applied to model the relationship between the manufacturer and retailer under two power scenarios of stackelberg game framework and the optimal policies in pricing, advertising, inventory management and logistics are identified. Two hierarchical genetic algorithms are proposed to solve the bi-level programming models. Based on collected data from Iranian automotive spare parts aftermarket, several numerical experiments are carried out to evaluate the validity of proposed models as well as the efficiency and effectiveness of solution procedures.
Keywords
Aust, G., & Buscher, U. (2014). Cooperative advertising models in supply chain management: A review. European Journal of Operational Research, 234(1), 1-14 .
Ben-Ayed, O., & Blair, C. E. (1990). Computational difficulties of bilevel linear programming .Operations Research, 38(3), 556-560 .
Eliashberg, J., & Steinberg, R. (1987). Marketing-production decisions in an industrial channel of distribution. Management science, 33(8), 981-1000 .
Giannoccaro, I., & Pontrandolfo, P. (2004). Supply chain coordination by revenue sharing contracts. International Journal of Production Economics, 89(2), 131-139 .
He, X., Prasad, A., & Sethi, S. P. (2009). Cooperative advertising and pricing in a dynamic stochastic supply chain: Feedback Stackelberg strategies. Production and Operations Management, 18(1), 78-94 .
Herrington, J. D., & Dempsey, W. A. (2005). Comparing the current effects and carryover of national-, regional-, and local-sponsor advertising. Journal of Advertising Research, 45(01), 60-72 .
Hutchins, M. S. (1953). Cooperative advertising: The way to make it pay: Ronald Press.
Koh, A. (2013). A metaheuristic framework for bi-level programming problems with multi-disciplinary applications Metaheuristics for Bi-level Optimization (pp. 153-187): Springer.
Köksoy, O., & Yalcinoz, T. (2008). Robust Design using Pareto type optimization: A genetic algorithm with arithmetic crossover. Computers & Industrial Engineering, 55(1), 208-218 .
Oduguwa, V., & Roy, R. (2002). Bi-level optimisation using genetic algorithm. Paper presented at the Artificial Intelligence Systems, 2002.(ICAIS 2002). 2002 IEEE International Conference on.
Raju, J., & Zhang, Z. J. (2005). Channel coordination in the presence of a dominant retailer. Marketing Science, 24(2), 254-262 .
Sadigh, A. N., Mozafari, M., & Karimi, B. (2012). Manufacturer–retailer supply chain coordination: A bi-level programming approach. Advances in Engineering Software, 45(1), 144-152 .
Sajadieh, M. S., Fallahnezhad, M. S., & Khosravi, M. (2013). A joint optimal policy for a multiple-suppliers multiple-manufacturers multiple-retailers system. International Journal of Production Economics, 146(2), 738-744 .
SeyedEsfahani, M. M., Biazaran, M., & Gharakhani, M. (2011). A game theoretic approach to coordinate pricing and vertical co-op advertising in manufacturer–retailer supply chains. European Journal of Operational Research, 211(2), 263-273 .
Simon, J. L., & Arndt, J. (1980). The shape of the advertising response function. Journal of Advertising Research, 20(4), 11-28 .
Sivanandam, S. N., & Deepa, S. N. (2007). Introduction to Genetic Algorithms: Springer Berlin Heidelberg.
Swami, S., & Shah, J. (2012). Channel coordination in green supply chain management. Journal of the Operational Research Society, 64(3), 336-351 .
Szmerekovsky, J. G., & Zhang, J. (2009). Pricing and two-tier advertising with one manufacturer and one retailer. European Journal of Operational Research, 192(3), 904-917 .
Taleizadeh, A. A., Niaki, S. T. A., & Wee, H.-M .(2013) .Joint single vendor–single buyer supply chain problem with stochastic demand and fuzzy lead-time. Knowledge-Based Systems, 48, 1-9 .
Von Stackelberg, H. (1952). The theory of the market economy: Oxford University Press.
Weng, Z. K. (1995). Channel coordination and quantity discounts. Management science, 41(9), 1509-1522 .
Xie, J., & Neyret, A. (2009). Co-op advertising and pricing models in manufacturer–retailer supply chains. Computers & Industrial Engineering, 56(4), 1375-1385 .
Xie, J & ,.Wei, J. C. (2009). Coordinating advertising and pricing in a manufacturer–retailer channel. European Journal of Operational Research, 197(2), 785-791 .
Young, R. F., & Greyser, S. A. (1983). Managing cooperative advertising: A strategic approach: Lexington Books.
Yue, J., Austin, J., Wang, M.-C., & Huang, Z. (2006). Coordination of cooperative advertising in a two-level supply chain when manufacturer offers discount. European Journal of Operational Research, 168(1), 65-85 .
Yugang, Y., Liang, L & ,.Huang, G. Q. (2006). Leader–follower game in vendor-managed inventory system with limited production capacity considering wholesale and retail prices. International Journal of Logistics: Research and Applications, 9(4), 335-350 .
Zhang, J., Xie, J & ,.Chen, B. (2013). Cooperative advertising with bilateral participation. Decision Sciences, 44(1), 193-203 .
Ben-Ayed, O., & Blair, C. E. (1990). Computational difficulties of bilevel linear programming .Operations Research, 38(3), 556-560 .
Eliashberg, J., & Steinberg, R. (1987). Marketing-production decisions in an industrial channel of distribution. Management science, 33(8), 981-1000 .
Giannoccaro, I., & Pontrandolfo, P. (2004). Supply chain coordination by revenue sharing contracts. International Journal of Production Economics, 89(2), 131-139 .
He, X., Prasad, A., & Sethi, S. P. (2009). Cooperative advertising and pricing in a dynamic stochastic supply chain: Feedback Stackelberg strategies. Production and Operations Management, 18(1), 78-94 .
Herrington, J. D., & Dempsey, W. A. (2005). Comparing the current effects and carryover of national-, regional-, and local-sponsor advertising. Journal of Advertising Research, 45(01), 60-72 .
Hutchins, M. S. (1953). Cooperative advertising: The way to make it pay: Ronald Press.
Koh, A. (2013). A metaheuristic framework for bi-level programming problems with multi-disciplinary applications Metaheuristics for Bi-level Optimization (pp. 153-187): Springer.
Köksoy, O., & Yalcinoz, T. (2008). Robust Design using Pareto type optimization: A genetic algorithm with arithmetic crossover. Computers & Industrial Engineering, 55(1), 208-218 .
Oduguwa, V., & Roy, R. (2002). Bi-level optimisation using genetic algorithm. Paper presented at the Artificial Intelligence Systems, 2002.(ICAIS 2002). 2002 IEEE International Conference on.
Raju, J., & Zhang, Z. J. (2005). Channel coordination in the presence of a dominant retailer. Marketing Science, 24(2), 254-262 .
Sadigh, A. N., Mozafari, M., & Karimi, B. (2012). Manufacturer–retailer supply chain coordination: A bi-level programming approach. Advances in Engineering Software, 45(1), 144-152 .
Sajadieh, M. S., Fallahnezhad, M. S., & Khosravi, M. (2013). A joint optimal policy for a multiple-suppliers multiple-manufacturers multiple-retailers system. International Journal of Production Economics, 146(2), 738-744 .
SeyedEsfahani, M. M., Biazaran, M., & Gharakhani, M. (2011). A game theoretic approach to coordinate pricing and vertical co-op advertising in manufacturer–retailer supply chains. European Journal of Operational Research, 211(2), 263-273 .
Simon, J. L., & Arndt, J. (1980). The shape of the advertising response function. Journal of Advertising Research, 20(4), 11-28 .
Sivanandam, S. N., & Deepa, S. N. (2007). Introduction to Genetic Algorithms: Springer Berlin Heidelberg.
Swami, S., & Shah, J. (2012). Channel coordination in green supply chain management. Journal of the Operational Research Society, 64(3), 336-351 .
Szmerekovsky, J. G., & Zhang, J. (2009). Pricing and two-tier advertising with one manufacturer and one retailer. European Journal of Operational Research, 192(3), 904-917 .
Taleizadeh, A. A., Niaki, S. T. A., & Wee, H.-M .(2013) .Joint single vendor–single buyer supply chain problem with stochastic demand and fuzzy lead-time. Knowledge-Based Systems, 48, 1-9 .
Von Stackelberg, H. (1952). The theory of the market economy: Oxford University Press.
Weng, Z. K. (1995). Channel coordination and quantity discounts. Management science, 41(9), 1509-1522 .
Xie, J., & Neyret, A. (2009). Co-op advertising and pricing models in manufacturer–retailer supply chains. Computers & Industrial Engineering, 56(4), 1375-1385 .
Xie, J & ,.Wei, J. C. (2009). Coordinating advertising and pricing in a manufacturer–retailer channel. European Journal of Operational Research, 197(2), 785-791 .
Young, R. F., & Greyser, S. A. (1983). Managing cooperative advertising: A strategic approach: Lexington Books.
Yue, J., Austin, J., Wang, M.-C., & Huang, Z. (2006). Coordination of cooperative advertising in a two-level supply chain when manufacturer offers discount. European Journal of Operational Research, 168(1), 65-85 .
Yugang, Y., Liang, L & ,.Huang, G. Q. (2006). Leader–follower game in vendor-managed inventory system with limited production capacity considering wholesale and retail prices. International Journal of Logistics: Research and Applications, 9(4), 335-350 .
Zhang, J., Xie, J & ,.Chen, B. (2013). Cooperative advertising with bilateral participation. Decision Sciences, 44(1), 193-203 .
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