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Coordination and Cooperation in Manufacturer-Retailer Supply Chains

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Data Mining and Knowledge Management (CASDMKM 2004)

Part of the book series: Lecture Notes in Computer Science ((LNAI,volume 3327))

Abstract

In this paper, we explore the role of vertical cooperative (co-op) advertising efficiency of transactions between a manufacturer and a retailer. We address the impact of brand name investments, local advertising, and sharing policy on co-op advertising programs. Game theory concepts form the foundation for the analysis. We begin with the classical co-op advertising model where the manufacturer, as the leader, first specifies its strategy. The retailer, as the follower, then decides on its decision. We then relax the assumption of retailer’s inability to influence the manufacturer’s decisions and discuss full coordination between the manufacturer and the retailer on co-op advertising. Two alternative bargaining models are employed to select the best co-op advertising scheme for achieving full coordination.

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Author information

Authors and Affiliations

  1. School of Business, Adelphi University, Garden City, New York, 11530, U.S.A.

    Zhimin Huang & Susan X. Li

Authors
  1. Zhimin Huang
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  2. Susan X. Li
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Editor information

Editors and Affiliations

  1. Research Center on Fictitious Economy and Data Science, Chinese Academy of Sciences, Beijing 100080, China; College of Information Science and Technology, University of Nebraska at Omaha, 68182, Omaha, NE, USA

    Yong Shi

  2. Institute of Policy & Management, Chinese Academy of Sciences, P.O. Box, 100080, Beijing, P.R. China

    Weixuan Xu

  3. College of Information Science and Technology, University of Nebraska at Omaha, 68182, NE, USA

    Zhengxin Chen

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© 2004 Springer-Verlag Berlin Heidelberg

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Huang, Z., Li, S.X. (2004). Coordination and Cooperation in Manufacturer-Retailer Supply Chains. In: Shi, Y., Xu, W., Chen, Z. (eds) Data Mining and Knowledge Management. CASDMKM 2004. Lecture Notes in Computer Science(), vol 3327. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-540-30537-8_19

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  • DOI: https://doi.org/10.1007/978-3-540-30537-8_19

  • Publisher Name: Springer, Berlin, Heidelberg

  • Print ISBN: 978-3-540-23987-1

  • Online ISBN: 978-3-540-30537-8

  • eBook Packages: Computer ScienceComputer Science (R0)

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