Pricing In A Two-Supplier, One-Retailer Supply Chain

Topics:
Logistics Planning,
Supplier Evaluation
Tags:
Capacity Constraint,
Channel Management,
Marketing,
Pricing Strategy,
Retail,
Retail Company,
University Of California At Berkeley,
Wholesale Price
Source:
University of California, Berkeley

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Overview: Manufacturing capacity constraints have a tremendous effect on retail and wholesale prices, yet very little research, especially in marketing but even in operations management, explicitly considers capacity constraints in setting prices. We examine the role of capacity constraints in a supply chain with a single retailer and two dominant suppliers, who sell differentiated but competing products to the retailer under the terms of a long-term (e.g., annual) purchase arrangement. Retail demands for the two products depend upon the prices selected by the retailer, which, in turn, depend upon the wholesale prices selected by the suppliers.

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Format: PDF | Size: 216KB | Date: May 2005 | Pages: 6

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