IDEAS home Printed from https://ideas.repec.org/a/inm/ormnsc/v40y1994i9p1145-1150.html
   My bibliography  Save this article

Coordinating Buyer-Seller Transactions Across Multiple Products

Author

Listed:
  • Rajeev Kohli

    (Graduate School of Business, Columbia University, New York, New York 10027)

  • Heungsoo Park

    (Yonsei University, Seoul 120-749, Korea)

Abstract

Joint ordering policies are examined as a method for reducing the transactions cost for multiple products sold by a seller to a homogeneous group of buyers. The problem of determining efficient joint ordering policies has the same structure as the previously-examined problem of determining the efficient ordering policy for a single product. Efficient joint lot-sizes are independent of prices, and are supported by a range of average-unit prices that permit every possible allocation of the transactions-cost saving between the buyer and the seller. Product bundling supports efficient joint orders across products, just as a quantity discount supports efficient transactions for a single product.

Suggested Citation

  • Rajeev Kohli & Heungsoo Park, 1994. "Coordinating Buyer-Seller Transactions Across Multiple Products," Management Science, INFORMS, vol. 40(9), pages 1145-1150, September.
    • Handle: RePEc:inm:ormnsc:v:40:y:1994:i:9:p:1145-1150
    DOI: 10.1287/mnsc.40.9.1145
    as

    Download full text from publisher

    File URL: http://dx.doi.org/10.1287/mnsc.40.9.1145
    Download Restriction: no
    File URL: https://libkey.io/10.1287/mnsc.40.9.1145?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Thomas, Douglas J. & Griffin, Paul M., 1996. "Coordinated supply chain management," European Journal of Operational Research, Elsevier, vol. 94(1), pages 1-15, October.
    2. Chiu, Singa Wang & Chou, Chung-Li & Wu, Wen-Kuei, 2013. "Optimizing replenishment policy in an EPQ-based inventory model with nonconforming items and breakdown," Economic Modelling, Elsevier, vol. 35(C), pages 330-337.
    3. Zhang, Xinyan & Huang, George Q., 2010. "Game-theoretic approach to simultaneous configuration of platform products and supply chains with one manufacturing firm and multiple cooperative suppliers," International Journal of Production Economics, Elsevier, vol. 124(1), pages 121-136, March.
    4. Chen, Tsung-Hui & Tsao, Yu-Chung, 2014. "Optimal lot-sizing integration policy under learning and rework effects in a manufacturer–retailer chain," International Journal of Production Economics, Elsevier, vol. 155(C), pages 239-248.
    5. Yu, Y. & Liang, L. & Huang, G.Q., 2006. "Leader-follower Game in VMI System with Limited Production Capacity Considering Wholesale and Retail Prices," ERIM Report Series Research in Management ERS-2006-054-LIS, Erasmus Research Institute of Management (ERIM), ERIM is the joint research institute of the Rotterdam School of Management, Erasmus University and the Erasmus School of Economics (ESE) at Erasmus University Rotterdam.
    6. D'Amours, Sophie & Montreuil, Benoit & Soumis, Francois, 1997. "Price-based planning and scheduling of multiproduct orders in symbiotic manufacturing networks," European Journal of Operational Research, Elsevier, vol. 96(1), pages 148-166, January.
    7. Lee, Chang Hwan, 2007. "Coordination on stocking and progressive pricing policies for a supply chain," International Journal of Production Economics, Elsevier, vol. 106(1), pages 307-319, March.
    8. Yuan-Shyi Peter Chiu & Victoria Chiu & Tsu-Ming Yeh & Hua-Yao Wu, 2020. "Incorporating Outsourcing Strategy and Quality Assurance into a Multiproduct Manufacturer–Retailer Coordination Replenishing Decision," Mathematics, MDPI, vol. 8(12), pages 1-19, December.
    9. Zhao, Qiu-Hong & Wang, Shou-Yang & Lai, K.K., 2007. "A partition approach to the inventory/routing problem," European Journal of Operational Research, Elsevier, vol. 177(2), pages 786-802, March.
    10. Beullens, Patrick, 2014. "Revisiting foundations in lot sizing—Connections between Harris, Crowther, Monahan, and Clark," International Journal of Production Economics, Elsevier, vol. 155(C), pages 68-81.
    11. Weng, Z. Kevin, 2004. "Coordinating order quantities between the manufacturer and the buyer: A generalized newsvendor model," European Journal of Operational Research, Elsevier, vol. 156(1), pages 148-161, July.
    12. Yu, Yugang & Chu, Feng & Chen, Haoxun, 2009. "A Stackelberg game and its improvement in a VMI system with a manufacturing vendor," European Journal of Operational Research, Elsevier, vol. 192(3), pages 929-948, February.
    13. Chen, Tsung-Hui, 2017. "Optimizing pricing, replenishment and rework decision for imperfect and deteriorating items in a manufacturer-retailer channel," International Journal of Production Economics, Elsevier, vol. 183(PB), pages 539-550.
    14. Li, Jianli & Liu, Liwen, 2006. "Supply chain coordination with quantity discount policy," International Journal of Production Economics, Elsevier, vol. 101(1), pages 89-98, May.
    15. Lee, Chang Hwan, 2001. "Coordinated stocking, clearance sales, and return policies for a supply chain," European Journal of Operational Research, Elsevier, vol. 131(3), pages 491-513, June.
    16. L Lei & Q Wang & C Fan, 2006. "Optimal business policies for a supplier–transporter–buyer channel with a price-sensitive demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(3), pages 281-289, March.
    17. Webster, Scott & Kevin Weng, Z., 2008. "Ordering and pricing policies in a manufacturing and distribution supply chain for fashion products," International Journal of Production Economics, Elsevier, vol. 114(2), pages 476-486, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:inm:ormnsc:v:40:y:1994:i:9:p:1145-1150. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Asher (email available below). General contact details of provider: https://edirc.repec.org/data/inforea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.