Does a Manufacturer Benefit from Selling to a Better-Forecasting Retailer?
Does a Manufacturer Benefit from Selling to a Better-Forecasting Retailer?
复制标题
DOI:
10.1287/mnsc.1100.1204
复制
发表时间:
2010-09-01
影响因子:
5.4
通讯作者:
Xiao, Wenqiang
中科院分区:
文献类型:
--
作者:
Taylor, Terry A.;Xiao, Wenqiang
This paper considers a manufacturer selling to a newsvendor retailer that possesses superior demand-forecast information. We show that the manufacturer's expected profit is convex in the retailer's forecasting accuracy: The manufacturer benefits from selling to a better-forecasting retailer if and only if the retailer is already a good forecaster. If the retailer has poor forecasting capabilities, then the manufacturer is hurt as the retailer's forecasting capability improves. More generally, the manufacturer tends to be hurt (benefit) by improved retailer forecasting capabilities if the product economics are lucrative (poor). Finally, the optimal procurement contract is a quantity discount contract.