We consider a distribution system in which one supplier provides a single product to several retailers at the beginning of a selling season. The supplier has infinite capacity. The customer demand at each retailer is randomly distributed. Customers who encounter a stockout at one retailer may search other retailers for the product. We study the effects of this market search behavior under both decentralized and centralized control. For the decentralized control model, we show the necessary and sufficient conditions for the existence of a Nash equilibrium, and the sufficient conditions for its uniqueness. For the centralized control model, we find that the payoff function is submodular, and thus we can only obtain allocations that are locally optimal for the entire supply chain. We also design a channel coordination mechanism to match the allocations in the decentralized control model with one of the local optimal allocations under centralized control.
| Identifer | oai:union.ndltd.org:NCSU/oai:NCSU:etd-06142003-191318 |
| Date | 20 June 2003 |
| Creators | Yuan, Pei-Lun |
| Contributors | Shu-Cherng Fang, Henry L. W. Nuttle, Xiuli Chao |
| Publisher | NCSU |
| Source Sets | North Carolina State University |
| Language | English |
| Detected Language | English |
| Type | text |
| Format | application/pdf |
| Source | http://www.lib.ncsu.edu/theses/available/etd-06142003-191318/ |
| Rights | unrestricted, I hereby certify that, if appropriate, I have obtained and attached hereto a written permission statement from the owner(s) of each third party copyrighted matter to be included in my thesis, dissertation, or project report, allowing distribution as specified below. I certify that the version I submitted is the same as that approved by my advisory committee. I hereby grant to NC State University or its agents the non-exclusive license to archive and make accessible, under the conditions specified below, my thesis, dissertation, or project report in whole or in part in all forms of media, now or hereafter known. I retain all other ownership rights to the copyright of the thesis, dissertation or project report. I also retain the right to use in future works (such as articles or books) all or part of this thesis, dissertation, or project report. |
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