A Study of Single-vendor and Multiple-retailers Pricing-Ordering Strategy under Group-Buying Online Auction

The supplier and buyers, with different objectives and self-interest, are separate economic entities acting independently and opportunistically to maximize their individual profits. In this paper, a GBA model in the B2B market is studied, where one supplier faces 2 different retailers, who cooperate in the order decision making. Firstly, the optimal ordering decision of the retailers was analyzed. Then, from the perspective of the supplier, the optimal pricing strategy of the supplier is also studied. Finally, it is concluded that the group buying online auction is a useful and efficient pricing mechanism in the B2B e-market, under which, all members of the supply chain will improve their payoffs

Optimal dynamic pricing and replenishment policies for deteriorating items

Marketing strategies and proper inventory replenishment policies are often incorporated by enterprises to stimulate demand and maximize profit. The aim of this paper is to represent an integrated model for dynamic pricing and inventory control of deteriorating items. To reflect the dynamic characteristic of the problem, the selling price is defined as a time-dependent function of the initial selling price and the discount rate. In this regard, the price is exponentially discounted to compensate negative impact of the deterioration. The planning horizon is assumed to be infinite and the deterioration rate is time-dependent. In addition to price, the demand rate is dependent on advertisement as a powerful marketing tool. Several theoretical results and an iterative solution algorithm are developed to provide the optimal solution. Finally, to show validity of the model and illustrate the solution procedure, numerical results are presented

AN APPROACH FOR DEVELOPING AN OPTIMUM QUANTITY DISCOUNT POLICY OF DETERIORATING ITEMS INVENTORY TRANSPORTATION SYSTEM

A deteriorating item inventory model under Weibull pattern deterioration rate with optimal quantity discount policy and mixed cargo transportation modes has been studied. The transportation modes are full container load (FCL) and less than container load (LCL). Deteriorating items, such as specialty gases which are applied in semiconductor fabrication etc. deteriorate owing to environmental variation. A quantity discount problem has been discussed between a seller (wholesaler) and a buyer (retailer). The seller purchases products from an upper-leveled supplier (manufacturer) and then sells them to the buyer who faces customers’ demand. The seller attempts to increase profit by controlling the buyer’s order quantity through a quantity discount strategy and the buyer tries to maximize profit considering the seller’s proposal.In the proposed model using the differential equations under various cost considerations, expressions for total cost function per unit time; optimum inventory level and optimal length of a cycle are obtained. All the expressions are illustrated graphically with the help of numerical example. The sensitivity analysis for the model has been performed to study the effect on cost function due to change of the values of the parameters associated with the model

Joint Pricing and Purchasing Decisions for the Dual-Channel Newsvendor Model with Partial Information

We investigate a joint pricing and purchasing problem for the dual-channel newsvendor model with the assumption that only the mean and variance of the demand are known. The newsvendor in our model simultaneously distributes a single product through traditional retail and Internet. A robust optimization approach that maximizes the worst-case profit is adapted under the aforementioned conditions to model demand uncertainty and linear clearing functions that characterize the relationship between demand and prices. We obtain a close-form expression for the robust optimal policy. Illustrative simulations and numerical experiments show the effects of several parameters on the optimal policy and on newsvendor performance. Finally, we determine that the gap between newsvendor performance under demand certainty and uncertainty is minimal, which shows that the robust approach can significantly improve performance

The mediating role of religious orientation on the relationship between luxury values, ethical values and buying behavior

Consumer behavior issues have become more heterogeneous because of cultural differences. This phenomenon makes it progressively important to understand factors impacting it. As such, this study examined the determinants of consumer buying behavior among Saudis and expatriates living in Riyadh, the capital city of the Kingdom of Saudi Arabia. Initially, this study discovered the role of religious orientation as a mediator between the relationships of luxury values, ethical value, media, word of mouth, price, motivation, and perceived cultural importance taken with consumer buying behavior. Partial Least Squares Method algorithm and bootstrap techniques were used to test the study hypotheses. The results provided support for most of the hypothesized relationships of the study. Specifically, ethical value, luxury values, motivation, price, and religious orientation were found significantly/positively related to consumer buying behavior which benefits the consumers. Also, creating value for the community was significantly/positively related to forms of consumer buying behavior. Additionally, religious orientation mediated between the relationships of ethical values, and perceived cultural importance taken with consumer buying behavior which showed consumers’ strong inclinations towards their ethical values and cultural perceptions. However, while creating value for the word of mouth, and price, a lack of significant relationship with religious orientation was found. As a whole, the results of mediation and other variables indicated that most of them were significant. The outcomes of this research seek to support industry and business practitioners in understanding the behavior of Saudis and expatriate consumers, and in using the findings to formulate strategies that enhance their competitiveness in the market. Finally, this research attempts to enrich marketing literature by providing empirical evidence on Saudis’ consumption behavior from the perspective of the Muslim populatio