Department   Ritsumeikan Asia Pacific University  College of Sustainability and Tourism
   Position   Professor
Language English
Publication Date 2019/11
Type Research paper (Academic/Professional Journal)
Peer Review Peer reviewed
Title Modelling Pricing, Vertical Co-op Advertising and Quality Improvement in a Non-cooperative Three-echelon Supply Chain Using Game Theory Approach
Contribution Type Corresponding
Journal RAIRO Operations Research (RAIRO-Oper.)
Journal TypeAnother Country
Publisher EDP Sciences, ROADEF, SMAI 2019
Volume, Issue, Page 53(5),pp.1937-1965
Total page number 29
Responsible for Corresponding author
Author and coauthor Shoeleh, M. Seifbarghy, D. Pishva
Details Abstract: Vertical cooperative (co-op) advertising is one of the well-known mechanisms for coordination of supply chains. Vertical co-op advertising is a financial agreement in which a member of the chain pays certain percentage (i.e. cooperation rate) of a subsequent member's advertisement cost. Since increasing the number of echelons and decision variables in supply chain problems increase the modelling and computational complexity, most researchers study vertical co-op advertising in a two-level supply chain including a manufacturer and a retailer. This paper investigates the problem by considering price and quality levels as additional decision variables in a three-echelon supply chain consisting of one supplier, one manufacturer, and one retailer. The ultimate goal is to show supply chain managers the importance of product quality as well the role of local advertisement in positively influencing market demand on top of the traditional approach of speed and efficiency optimization.