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Trade promotion policies in manufacturer-retailer supply chains

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  • Tsao, Yu-Chung
  • Lu, Jye-Chyi

Abstract

This study considers a manufacturer-retailer supply chain in which the manufacturer provides trade promotions the retailer. We compare with four trade promotions (off-invoice, scan-back, unsold-discount and target rebate). Consider the linear price sensitive and uncertain demand, the results indicate that both manufacturer and retailer benefit from the unsold-discount policy; only manufacturer benefits from the target rebate policy. However, target rebate can benefit both manufacturer and retailer when the wholesale price is determined within the appropriate range of an agreement. Consider the price-elasticity and uncertain demand, both manufacturer and retailer can only benefit from the target rebate policy.

Suggested Citation

  • Tsao, Yu-Chung & Lu, Jye-Chyi, 2016. "Trade promotion policies in manufacturer-retailer supply chains," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 96(C), pages 20-39.
    • Handle: RePEc:eee:transe:v:96:y:2016:i:c:p:20-39
    DOI: 10.1016/j.tre.2016.09.014
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    References listed on IDEAS

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    Cited by:

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    3. Liang, Guitian & Gu, Chaocheng, 2021. "The value of target sales rebate contracts in a supply chain with downstream competition," International Journal of Production Economics, Elsevier, vol. 242(C).

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