• Title/Summary/Keyword: Manufacturer and Distributor

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An Empirical Study on the Performance of the Medium-Sized Distributor's Offsetting Investment and Relationship Commitment with Large-sized Manufacturing Firm in the Marketing Channel (유통경로상의 상쇄투자와 관계결속이 경로구성원의 성과에 미치는 영향)

  • 이수동;이영건
    • Journal of Distribution Research
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    • v.4 no.2
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    • pp.1-20
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    • 1999
  • This study aims to provide distributors with several implications on the channel strategy by testing factors which influence on the offsetting investment. Medium-sized distributor facing a relatively inferior power can cause profit vulnerability from large manufacurer's opportunistic behaviors. At the same time, we tested the relationship commitment to the relation with manufacturer as another alternative strategy taken by medium-sized distributer. For this research, samples from dealers in oil-petroleum refinery industry were selected and the data was collected using mail survey. The data was analyzed utilizing validity test, reliability test, factor analysis, correlation analysis and LISREL. The major analyzed results are as follows: First, the offsetting investment of preventing loss from manufacturer's opportunism didn't affect medium-sized distributor's sales empirically. Second, the hypothesis that the more the medium-sized distributor's transaction specific assets which they invest in the transactional relationship with manufacturer, the more the safeguard against the expected opportunism of manufacturer was not supported by the results. Third, the more use of coercive power by the manufacturer, the more increase in the perception of expected opportunism of manufacturer by the medium-sized distributor, it make stimulates offsetting investment as safeguard by medium-sized distributor and it has negative effect on developing commitment. Finally, the large manufactures dealing with a medium-sized distributor firm which had a reputation of fairness didn't make offsetting investment as a response for distributor's opportunism.

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Collaborative Agent Based Supply Chain Planning for Functional Product Markets (기능성 제품시장을 위한 협업 에이전트 기반 공급사슬계획)

  • Jung, Ho-Sang;Jeong, Bong-Ju;Lee, Chi-Guhn
    • IE interfaces
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    • v.19 no.1
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    • pp.53-61
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    • 2006
  • We propose a new supply chain planning methodology for both a manufacturer and a distributor in order to find a global supply chain plan for functional product markets. Functional products as opposed to innovative products include the staples that people buy regularly from their nearby places to satisfy basic needs. In the functional product market, the distributor has an initiative of supply chain control and planning with a freedom to request any profit maximizing order quantities until the manufacturer refuses, whereas the manufacturer may not provide more than requested. In this paper, two independent agents on behalf of the manufacturer and the distributor are introduced, and supply chain planning can be conducted by collaboration between them. In addition, mathematical models and a numerical example are presented to show the possibility of the proposed methodology.

Distributor's Multilateral Bargaining Strategy in the Vertically Differentiated Product Market (수직적으로 차별화된 제품시장 내에서 유통업체의 다자간 협상전략에 관한 연구)

  • Cho, Hyung-Rae;Rhee, Minho;Lim, Sang-Gyu
    • Journal of Korean Society of Industrial and Systems Engineering
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    • v.38 no.2
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    • pp.31-39
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    • 2015
  • In this paper, we study the bargaining strategy of a distributor who sells vertically differentiated, i.e. high and low brand products. We derive and analyze the equilibrium solutions for both simultaneous and sequential bargaining games among the distributor, the high brand product manufacturer and the low brand product manufacturer. The result shows that the optimal bargaining strategy for the distributor heavily depends on the relative quality and price level of the low brand product comparing to those of the high brand product. It is also shown that, for more bargaining profit, the distributor has strong motivation to prefer a low brand product which has lower quality level per unit price.

An Optimal Strategy of 3G Mobile Handset Distribution by 3-Person Game (3자간게임모형에 의한 3G 이동통신단말기의 치적유통전략)

  • Joo, Young-Jin;Moon, Hyoung-Don
    • Journal of the Korean Operations Research and Management Science Society
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    • v.34 no.4
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    • pp.185-204
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    • 2009
  • The USIM(universal subscriber identity module)-unlock introducing in July 1, 2008 might be led to a significant change that mobile service provider's dominance is considerably dispersed to the handset manufacturer and distributor. Under USIM-unlock environment, mobile service provider, handset manufacturer, and distributor have to make their decisions on their handset distribution channel strategies: the closed distribution channel strategy or the open distribution channel strategy. The change of distribution channel strategy between members in distribution channel can be understood as a matter of strategy choice, and we have developed a theoretical model and analyzed how to make a decision for the member's optimal distribution strategy based on 3-person game model between members of mobile phone distribution channel, under both of '1 subscriber-1 handset' and '1 subscriber-multiple handset' assumptions. Under '1 subscriber-1 handset' assumption, the closed strategy controlled by mobile service provider is all players' optimal solution because the maximum size of the mobile phone market is limited by subscribers. But, as total expected profit by the handset and distribution subsides is a deficit, mobile service provider have to choose the open strategy and consider the conversion to MNO(mobile network operator). Under '1 subscriber-multiple handset' assumption, mobile service provider is trying to find the way how to lock-in its service and mobile phone and how to maximize ARPU(average revenue per unit), while handset manufacturer and distributor have to look for the way how to maximize the mobile phone market using their own marketing efforts, because it is expected that total mobile handset demand for the open market is bigger than demand for the closed market under '1 subscriber-multiple handset' assumption.

Relational Exchange As Affected by the Conflict-Resolution Mechanism (유통경로상 갈등해결양식이 관계형 거래에 미치는 영향)

  • 현용진
    • Journal of Distribution Research
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    • v.6 no.2
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    • pp.65-89
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    • 2002
  • Compromise is a conflict-resolution mechanism whereby both parties mutually make concessions and reach an agreement somewhere between their initial positions. In the process of a compromise, both parties may engage in three kinds of behaviors with respect to concessions. First, a party makes a concession in response to another's concession (a positive matching behavior). Second, a party makes a demand in response to another's demand (a negative matching behavior). Third, a party makes a concession/demand in response to another's demand/concession (a mismatching behavior). A situation is considered where a manufacturer intends to resolve a conflict with a distributor using a compromise. In this situation, a conceptual framework is addressed. This framework presents a set of variables affecting the likelihood that given a manufacturer's concession, the distributor engages in a positive matching behavior, Then, the framework explains how this positive matching behavior affects the distributor's commitment to the relationship with the manufacturer. Seventeen propositions are derived from the conceptual framework. Discussions on conflict-resolution strategies are developed on the basis of this framework.

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The Effect of Customers Loyal to National Brand on Brand Launch Strategy

  • Kang, Min-Jeong;Hwang, Hee-Joong
    • Journal of Distribution Science
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    • v.16 no.2
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    • pp.47-51
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    • 2018
  • Purpose - Typically, retailers will want PB(Private Brand) products to expand to the needs of low-PB loyal customers as well as existing PB(Private Brand) loyal customers. Therefore, a strategy of minimizing the share of the manufacturer brand in the distributor can be considered as a way to maximize the profit of the distributor. Research design, data, and methodology - In the previous study, the researches about the rivalry and conflict between the NB(National Brand) products and the PB products were mainly made. Previous studies did not model inter-national brand-level competition and inter-store competition. In addition, they have focused only on distributors' decisions from the manufacturer's perspective, and assume channel members have the same level of members(Choi, 1996). Results - This paper tries to apply the game theory to researches on how retailers can maximize the benefits of distributing NB(National Brand) products and PB(Private Brand) products, while distributors can also take advantage of their profits. Conclusions - It was found that providing cheap PBs did not help manufacturers and distributors. Distributors and manufacturers' profits were determined by consumers who purchased NB products that were higher in price and higher in perceived quality before providing existing PB products to consumers.

Vehicle Routing Problem with Time Windows considering Outsourcing Vehicles (외주차량을 고려한 시간제약이 있는 차량경로문제에 대한 연구)

  • Seong, June;Moon, Il-Kyeong
    • Journal of Korean Institute of Industrial Engineers
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    • v.32 no.2
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    • pp.91-97
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    • 2006
  • The vehicle routing problem with time windows (VRPTW) is an important problem in third party logistics and supply chain management. We extend the VRPTW to the VRPTW with overtime and outsourcing vehicles (VRPTWOV) which allows the overtime of drivers and the possibility of using outsourcing vehicles. This problem can be applied to third party logistics companies for managing central distributor-local distributors, local distributor-retailers (or customers), and a manufacturer. We develop a mixed integer programming model and a genetic algorithm. Computational results demonstrate the efficiency of the developed genetic algorithm. We also develop a decision support system based on this genetic algorithm.

Development of Integrated Inventory Management Model and Determination Inventory Replenishment Period in SCM (SCM 환경 하에서 재고보충주기 결정 및 통합 재고관리 모델 개발)

  • Kim, Myeong-Hun;An, Dong-Gyu
    • 한국디지털정책학회:학술대회논문집
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    • 2007.06a
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    • pp.349-357
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    • 2007
  • We consider supply chain which consist of one manufacturer, one distributor and N retailers for a single product. This paper determines inventory replenishment period of supply chain using houristic method and propose order policy through re-coordination of inventory replenishment. Also, We develops inventory management model to calculate total cost of supply chain under assumptions of constant demand. The computational results show that the proposed inventory replenishment period and inventory management model is efficient.

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Development of Integrated Inventory Management Model and Determination Inventory Replenishment Period in SCM (SCM 환경 하에서 재고보충주기 결정 및 통합 재고관리 모델 개발)

  • Kim, Myoung-Hun;An, Dong-Kyu
    • Journal of Digital Convergence
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    • v.5 no.1
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    • pp.47-53
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    • 2007
  • We consider supply chain which consist of one manufacturer, one distributor and N retailers for a single product. This paper determines inventory replenishment period of supply chain using heuristic method and propose order policy through re-coordination of inventory replenishment. Also, We develops inventory management model to calculate total cost of supply chain under assumptions of constant demand. The computational results show that the proposed inventory replenishment period and inventory management model is efficient.

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Supply Chain Management from the Strategic Perspective through the Theory of Constraints (TOC 이론을 기반으로 한 전략적 관점에서의 공급사슬관리)

  • 간형식;김기주;황재훈
    • Journal of Korea Society of Industrial Information Systems
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    • v.7 no.3
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    • pp.95-106
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    • 2002
  • As the information technology including Internet not only opened the cyber world but also has evolved as a platform that enables a new generation of businesses and remolds the shape of thinking and the rules of supply chain management (SCM). By using the Theory of Constraints, which seems simple but robust to review the traditional SCM context, the paper proposes a conceptual framework to handle the SCM issues. From the strategic perspective, this paper focuses on three policy constraints: supplier-manufacturer oriented constraints, manufacturer-distributor oriented constraints, and supply chain oriented constraints. To optimize the throughput and sustain the competitiveness of supply chain members in the dynamic business environment, the companies should utilize the potential competency of information technology and consistently perform the activities of removing and/or reinforcing the constraints.

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