Abstract
Previous studies related to cooperative advertising mainly focus on the one-period supply chain. In the fashion and textiles (FT) supply chain, the demand of most FT products (fashion clothing, vogue handbags, fashion shoes, and so on) varies over time due to the trends of fashion. In these conditions, a decision-making framework with a multiple-period supply chain becomes more realistic. In view of this, we investigate the optimal cooperative advertising strategies in a two-period FT supply chain consisting of a manufacturer and a retailer in two different scenarios: (i) each channel member makes decisions within a cooperative program; (ii) the retailer is vertically integrated with a manufacturer. Also, we introduce a two-way subsidy contract to coordinate the supply chain.
Highlights
Today, the public has been paying more attention to product quality
We investigate the optimal cooperative advertising strategies in a two-period fashion and textiles (FT) supply chain consisting of a manufacturer and a retailer in two different scenarios: (i) each channel member makes decisions within a cooperative program; (ii) the retailer is vertically integrated with a manufacturer
Owing to the fact that fashionable trends change rapidly, the effect of FT product quality on demand changes over time, which induces the consumers’ demand variations; the FT supply chain could be seen as a two-period or multiple-period supply chain
Summary
The public has been paying more attention to product quality. This is especially true in the fashion and textiles (FT) industry, which has been one of the most rapidly developing industries in the world over the past decade. The significant contribution of our study is that it generalizes existing cooperative advertising work on the “oneperiod supply chain” framework to the “two-period supply chain” framework. This generalization has provided new analytical results about the manufacturer’s subsidy policies and supply chain coordination. We propose a twoperiod cooperative advertising model for a manufacturer and a retailer FT supply chain where the demand varies in two Mathematical Problems in Engineering different periods. To answer the above questions, we derive the optimal decisions in two different scenarios: (i) each channel member makes decisions within a cooperative program and (ii) the manufacturer and the retailer are vertically integrated. Proofs of all propositions in the paper are given in the Appendix
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