Channel coordination in a consignment contract

作者: Dengfeng Zhang , Renato de Matta , Timothy J. Lowe

DOI: 10.1016/J.EJOR.2010.05.027

关键词: Production (economics)BusinessCommunication channelPaymentIndustrial organizationCommerceChannel coordinationConsignmentInefficiencyRevenue sharingRevenue

摘要: With the emergence of virtual market places, consignment selling has been thriving at an unprecedented pace. It shown in literature that inefficiency exists a decentralized channel with single revenue share agreement. In our study, we analyze contracts observed practice contain bonus or side payment terms, and examine whether they can promote better coordination between supplier retailer. We found no multi-tier Bonus system fully coordinate channel. However, fine adjustments parameters bring close to full coordination. Additionally, sharing not only channel, but also be customized meet needs small, medium large suppliers for extra retailer services such as warehousing transportation. Managerial insights on how design from supplier, perspectives are discussed paper.

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