Goodwill hunting and profit sharing: decision-making in a newspaper chain.

Pearson, Mike (2007) Goodwill hunting and profit sharing: decision-making in a newspaper chain. European Journal of Operational Research, 181 (3). pp. 1593-1606. ISSN 0377 2217

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A generalised equilibrium solution to the stochastic two-echelon newsvendor problem is achievable when formulated in the context of some cooperation and coordination between the primal (retailer) and dual (manufacturer) operators. We build on previous work detailing this equilibrium solution and apply it to the newspaper business. The solution incorporates changes in variability encountered due to promotional activity which extends the efficient frontier. We also consider consequences for profit and goodwill costs of identifying an equilibrium solution when additional income is generated from a source outside of the supply chain, such as advertising. We generalise to the supply chain network where there is some knowledge of demand or supply distributions further up or down the supply chain. We find that the primal–dual formulation and equilibrium solution apply to interactions between components of supply chain networks and illustrate with the transition to the direct distribution of newspapers.

Item Type: Article
Print ISSN: 0377 2217
Uncontrolled Keywords: inventory; newsvendor; supply chain networks; Equilibrium solution; automatic allocation; newspapers;
University Divisions/Research Centres: The Business School > School of Accounting, Economics and Statistics
Dewey Decimal Subjects: 300 Social sciences > 380 Commerce, communications & transportation > 384 Communications; telecommunication
300 Social sciences > 330 Economics > 332 Financial economics
600 Technology > 650 Management & public relations > 658 General management
Library of Congress Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28 Management. Industrial Management
H Social Sciences > HB Economic Theory
Item ID: 2123
Depositing User: RAE Import
Date Deposited: 29 Feb 2008 11:16
Last Modified: 15 Jul 2015 14:08

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