Journal ArticleDOI
Coordination of marketing and production for price and leadtime decisions
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In this article, the authors study a firm which serves customers that are sensitive to quoted price and leadtime, with pricing and lead-time decisions being made by the marketing and production departments, respectively.Abstract:
We study a firm which serves customers that are sensitive to quoted price and leadtime, with pricing and leadtime decisions being made by the marketing and production departments, respectively. We analyze the inefficiencies created by the decentralization of the price and leadtime decisions. In the decentralized setting, the total demand generated is larger, leadtimes are longer, quoted prices are lower, and the firm's profits are lower as compared to the centralized setting. We show that coordination can be achieved using a transfer price contract with bonus payments. We also provide insights on the sensitivity of the optimal decisions with respect to market characteristics, sequence of decisions and the firm's capacity level.read more
Citations
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Journal ArticleDOI
Demand functions in decision modeling : a comprehensive survey and research directions
TL;DR: A comprehensive survey of commonly used demand models which depend on price, rebate, lead time, space, quality, and quality, as well as game theoretic multifirm models involving strategic interaction among the firms.
Journal ArticleDOI
A Review of Marketing-Operations Interface Models: From Co-Existence to Coordination and Collaboration
TL;DR: In this paper, a unified framework for classifying various marketing-operations interface models is presented, which may serve as a guide to navigate through the sea of research articles in this important area.
Journal ArticleDOI
A review of marketing–operations interface models: From co-existence to coordination and collaboration
TL;DR: In this paper, the authors present a unified framework for classifying various marketing-operations interface models that may serve as a guide to navigate through the sea of research articles in this important area.
Journal ArticleDOI
Strategic transfer pricing in a marketing–operations interface with quality level and advertising dependent goodwill☆
TL;DR: In this article, the authors investigate the effects of negotiated and administered transfer pricing on the profits of each center and the firm based on a differential game involving an operations department and a marketing department within a firm.
Journal ArticleDOI
Coordinating a supply chain with a quality assurance policy via a revenue-sharing contract
TL;DR: In this article, the authors investigated the coordination of a global supply chain consisting of one manufacturer and one retailer via a revenue sharing contract, where a product quality assurance policy is provided and the utility of consumer is sensitive to product (physical) quality, service quality (i.e., reciprocal of delivery lead-time) and retail price.
References
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Book ChapterDOI
Supply Chain Coordination with Contracts
TL;DR: This chapter extends the newsvendor model by allowing the retailer to choose the retail price in addition to the stocking quantity, and discusses an infinite horizon stochastic demand model in which the retailer receives replenishments from a supplier after a constant lead time.
Journal ArticleDOI
Optimal incentive-compatible priority pricing for the M/M/1 queue
Haim Mendelson,Seungjin Whang +1 more
TL;DR: This paper derives a pricing mechanism which is optimal and incentive-compatible in the sense that the arrival rates and execution priorities jointly maximize the expected net value of the system while being determined, on a decentralized basis, by individual users.
Journal ArticleDOI
Price, delivery time guarantees and capacity selection
TL;DR: An optimization model is developed to determine the joint optimal selection of these three important decision variables, with an objective of maximizing the average net profit in service industries where demands are sensitive to both price and delivery time.
Journal ArticleDOI
User delay costs and internal pricing for a service facility
Sanjeev Dewan,Haim Mendelson +1 more
TL;DR: In this paper, the authors studied optimal pricing and capacity decisions for a service facility in an environment where users' delay cost is important and found necessary and sufficient conditions for the optimality of a pricing rule that charges out service resources at their marginal capacity cost.