University of Tasmania
Browse

File(s) under permanent embargo

Universal point scheme with a platform and multiple retailers

journal contribution
posted on 2023-05-21, 05:23 authored by Feng, X, Wen, B, Wenming ShiWenming Shi, Moon, I
This paper studies the universal point scheme with multiple retailers and a platform that implements the points within a channel. First, we analysed the equilibriums of the channel under the decen-tralised control and the mode of lateral cost-sharing among retailers. We found that retailers are willing to set the lowest point conversion ratios under the lateral cost-sharing mode compared with the decentralised and centralised control modes. The optimal conversion ratio of a retailer under the decentralised control is greater than the one under the centralised control when the cost spillover and double marginalisation are not significant. Next, we extended the model by considering the participation of new retailer. In this dynamic channel, the impact of the cost spillover phenomenon on the channel members' preferences is discussed. Third, we showed that the wholesale price contract for point management used in the real world has a limitation in terms of profit split. Following this, we proposed a buyback contract and showed the optimal contract parameters under which the channel's profit could be maximised and arbitrarily split. The managerial insights we obtained shed light on how to design a universal point scheme and select channel members to achieve an all-win scenario.

History

Publication title

International Journal of Production Research

Pagination

1-21

ISSN

0020-7543

Department/School

Australian Maritime College

Publisher

Informa

Place of publication

UK

Rights statement

Copyright 2022 Informa UK Limited, trading as Taylor & Francis Group

Repository Status

  • Restricted

Socio-economic Objectives

Management of gaseous waste from transport activities (excl. greenhouse gases)

Usage metrics

    University Of Tasmania

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC