Competition of manufacturers for retailer shelf space

Diler, Betül
In this thesis, we consider two partially substitutable products sold through a twoechelon supply chain, consisting of two suppliers and one retailer. We assume a random aggregate demand that is split between the two products, so the products have separated random demand as long as both are available. In case of a stockout in one of the products, that product’s demand can spill over to the competing product, which causes a correlation between the final demand of the products and their stocking quantities. The retailer decides order quantities by considering the prices and the spillover rates of the products. The suppliers play a Stackelberg game on price to increase the retailer’s order quantities. We analyze the equilibrium pricing decision of the suppliers and ordering decision of the retailer in a three stage dynamic game for a single period. We investigate the effect of spillover rate on pricing decision of the suppliers, the effect of spillover rates on the inefficiency caused by decentralization in the supply chain and the effect of disregarding the spillover rates by one of the suppliers or all parties in the chain.


Joint quantity flexibility for multiple products in a decentralized supply chain
Karakaya, Selcuk; Bakal, İsmail Serdar (2013-02-01)
In this study, we analyze a decentralized supply chain with a single retailer and a single manufacturer where the retailer sells multiple products in a single period. The products differ in terms of a limited number of features only. The retailer places initial orders based on preliminary demand forecasts at the beginning of the period and has an opportunity to modify its initial order after receiving perfect demand information. However, the final orders of the retailer are constrained by its initial orders...
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Uğur, Havva Gülçin; Karaer, Özgen; Department of Industrial Engineering (2015)
In this study, we analyze a monopolist retailer’s product differentiation problem in a multi-channel environment. We investigate the type of conditions that would motivate retailer to open an outlet branch, to open an online channel, and to even potentially open an online channel for the outlet branch, and how these decisions interact with each other. We use quality and price as the primary drivers in the outlet business decision in a vertical differentiation model. In the outlet business decision, specific...
Joint quantity flexibility under market information update
Oskay, Mine Gülden; Bakal, İsmail Serdar; Department of Industrial Engineering (2013)
In this study, we consider a decentralized supply chain consisting of a single retailer and a single manufacturer who manufacture two products in a given single period. The retailer commits to purchase an aggregate order quantity for the products at the beginning of the period before information on the market condition is revealed. Accordingly, the manufacturer then determines its initial production quantities for the products. Once market condition is revealed the retailer allocates its initial order to in...
Optimization of Supply Chain Systems with Price Elasticity of Demand
Kaplan, Ugur; TÜRKAY, METİN; Karasözen, Bülent; Biegler, Lorenz T. (2011-09-01)
A centralized multiechelon, multiproduct supply chain network is presented in a multiperiod setting with products that show varying demand against price. An important consideration in such complex supply chains is to maintain system performance at high levels for varying demands that may be sensitive to product price. To examine the price-centric behavior of the customers, the concept of price elasticity of demand is addressed. The proposed approach includes many realistic features of typical supply chain s...
New product introduction incentives for suppliers and a common retailer
Kırcı, Kubilay.; Karaer, Özgen; Department of Industrial Engineering (2020)
In this thesis, we investigate the effect of the new product introduction in a supply chain of two suppliers and a common retailer. We study two settings. In this first, we find the two-product equilibrium in which each supplier produces one product and sells his product through a two echelon supply chain. In the first stage, suppliers announce their wholesale price simultaneously. Then, the retailer sets the retail price that maimizes her profit. In the second setting, one of the suppliers considers introd...
Citation Formats
B. Diler, “Competition of manufacturers for retailer shelf space,” M.S. - Master of Science, Middle East Technical University, 2016.