Abstract
The manufacturer sells the product through a retailer with the consignment sales scheme in international trade, meanwhile many demand enhancing promotion, eg, after sales services, advertisement etc. can be provided either by the manufacturer or by the retailer. We study the preferences of the supply chain members to invest on the sales promotion when the trade scheme is the consignment sales. We find (1) the manufacturer always prefer providing the sales promotion, (2) but, there exists a threshold level of the percentage allocation of revenue in model IC, the retailer wishes the manufacturer' sales promotion if the level of the percentage allocation of revenue is more than the threshold, otherwise wishes to invest on the sales promotion by herself.
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