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Collaborative Promotions

Optimizing Retail Supply Chains with Upstream Information Sharing

  • Book
  • © 2010

Overview

Authors:
  1. Daniela Wiehenbrauk

    1. , Production Management, WHU - Otto Beisheim School of Management, Vallendar, Germany

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  • Novel approach to improving Supply Chain efficiency by upstream information sharing between retailers and manufactures
  • Joint pricing and inventory model
  • Development of a model and proof of a mixed strategy equilibrium for two players to capture the observed market dynamics
  • With a lasting impact on the field
  • Empirical data analysis
  • Includes supplementary material: sn.pub/extras

Part of the book series: Lecture Notes in Economics and Mathematical Systems (LNE, volume 643)

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Table of contents (6 chapters)

  1. Front Matter

    Pages i-xx
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  2. Introduction

    • Daniela Wiehenbrauk
    Pages 1-4

  3. Promotions and Collaboration in Retailing

    • Daniela Wiehenbrauk
    Pages 5-16

  4. Literature Review

    • Daniela Wiehenbrauk
    Pages 17-40

  5. Retailer Competition

    • Daniela Wiehenbrauk
    Pages 41-97

  6. Empirical Analysis

    • Daniela Wiehenbrauk
    Pages 99-125

  7. Conclusion and Managerial Insights

    • Daniela Wiehenbrauk
    Pages 127-130

  8. Back Matter

    Pages 131-153
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Keywords

About this book

Promotions are at the same time beloved and feared by both food retailers and branded goods manufacturers in today’s retail environment. Beloved because they attract smart customers and generate an immediate effect on a brand’s sale. Feared because there is uncertainty about the competitors’ behavior and the actual customer demand leading to high forecast errors. For the retailer, this results in a doom loop of over- or understocking with high inventory costs in the supply chain. Collaboration between retailers and the manufacturer disentangles the doom loop. The thesis reveals the appropriate kind and timing of information and develops a so called Competition Index. Inventory in the supply chain is eliminated and the customer is served better at a lower price. Based on a joint inventory and pricing model and an empirical analysis, it shows that the supply chain efficiency gains from collaborative promotions result in a win for customers, retailers and the manufacturer.

Authors and Affiliations

  • , Production Management, WHU - Otto Beisheim School of Management, Vallendar, Germany

    Daniela Wiehenbrauk

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