Work

New Optimal-Control-Based Advertising Strategies and Coordination of a Supply Chain With Differentiated Products Under Consignment Contract

Year: 2019

Type: article

Abstract: With the aid of optimal control theory, the cooperative advertising problem is discussed for a supply chain under consignment contract in a competitive environment. Consider the case that the market demand of products is affected by advertising effort and goodwill, both the optimal advertising strategies and advertising participation rate in the centralized and decentralized settings are given. The state-dependent contract with the slotting fees is introduced to coordinate the considered supply chain. Our results demonstrate that the participation rate is closely related to the marginal profits of channel members and the competition intensity between products. Besides, the state-dependent contract with the slotting fees can effectively coordinate the supply chain when the contract parameters satisfy certain conditions. Finally, the sensitivity analysis of the competition intensity between products is conducted by using some simulations.

Source: IEEE Access

DOI: 10.1109/access.2019.2956287

Authors: Zhihui Wu, Dongyan Chen

Institutions: Harbin University of Science and Technology, University of South Wales

Language: English

Topic: Supply Chain and Inventory Management

Subfield: Management Science and Operations Research

Field: Decision Sciences

Domain: Social Sciences

Open Access status: gold

Estimated APC paid: $1,750

OpenAlex ID: W2989773072