Designing Two-Part Tariff Contracts for Product Suppliers from the Perspective of a Distributor
Date Issued
2015
Date
2015
Author(s)
Fan, Kang-Chieh
Abstract
Major distributors in Taiwan like 7-ELEVEN, TSANN KUEN 3C, Carrefour, and SHIN KONG MITSUKOSHI, have thriving. Products and brands have to count upon distributors to achieve a better goal of sale and larger market share. Comparing with earlier studies which focused on the perspective of product suppliers and manufacturers, studies in this generation could discuss more about the topics that distributors is more powerful, and the profit sharing of distributors might become more than product suppliers. Consequently, we set up the topic to design two-part tariff contracts between a distributor and its suppliers with a viewpoint of the distributor. To design contracts among multiple product suppliers is the central research question of this thesis. We consider a problem setting of a triadic supply chain with one distributor in downstream, and two product suppliers in the upstream. We postulate the market share of one supplier is bigger than the other, then construct the distributor-Stackelberg model named as the basic optimization model, with the distributor as the game leader. This research extends the model to a centralized supply chain regime model, which take the fixed fee as a way to draw the surplus revenue from the suppliers. According to the result of the model, we could formulate key strategies: (1) Considering the smaller market share supplier for drawing up the two-part tariff format contract. The market share factor and the per-unit fee are in the direct ratio. (2) Considering the larger market share supplier for drawing up the two-part tariff format contract. The product differentiation factor and the per unit fee are in the direct ratio too.
Subjects
contract design
menu of contract
two-part tariff
difference between product suppliers
duopoly market
Type
thesis
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ntu-104-R02546018-1.pdf
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