Supply Chain Design With Cross Sales, Product Design, and Price -Setting Competitive Newsvendors

Essay 3 addresses the problem of supply chain design under demand uncertainty. Consider two manufacturers, each producing a substitutable product and selling it through either a decentralized or an integrated retailer, which is modeled as a price-setting newsvendor. A multiplicative demand function incorporating a random factor &egr; is assumed. Results indicate the following: if &egr; is uniformly distributed on [0, x], then the equilibrium design does not depend on the variance of &egr;; if &egr; is uniformly distributed on [1-r, 1+r], then the equilibrium design does depend on the variance. In particular, an increase in r favors the integrated structure where both channels are integrated and hurts the decentralized configuration where both channels are decentralized. I also establish that production cost always favors the decentralized structure while hurts the integrated one.

Name thesis:degree_name

Ph.D.

Level thesis:degree_level

Dissertation

Discipline thesis:degree_discipline

Business Administration

Grantor

University of Illinois at Urbana-Champaign

Year dc:date

2015

Author dc:creator

• Wu, Chongqi

Contributors dc:contributor

• Chhajed, Dilip

• Business Administration, Marketing

Language dc:language

eng

Identifier

(MiAaPQ)AAI3202186

OAI identifier oai:identifier

oai:www.ideals.illinois.edu:2142/84547