[Announcement] Prof. Mukhopadhyay won the 2009 Distinguished Paper Award from Decision Sciences Institute
- SKK GSB
- Hit10556
- 2009-11-25
CONGRATULATIONS!
Prof. Samar Mukhopadhyay of Decision Sciences won the 2009 Distinguished Paper Award of the Decision Sciences Institute. Prof. Mukhopadhyay has published several excellent articles in top-tier journals
Title:
Contracting, Salesforce Incentives, and Inventory Planning Under Supply Chain Competition
Researcher:
Ying Zhang (University of Wisconsin - Milwaukee)
Samar Mukhopadhyay (Sungkyunkwan University SKK GSB)
Abstract:
We investigate contracting, salesforce incentives, and inventory planning in two competing supply chains, each consisting of one manufacturer and one salesforce. The two supply chains are identical, except that they may have different contract types. We use a non-cooperative game method to study this topic. In the first stage, the manufacturers decide which contract type to choose. Then, in the next stage, given the contract type structure created in the first stage, the manufacturers offer contracts to their salesforces and the salesforces engage in a competition. We analyze the game for two different contract types – a single linear contract and a menu of linear contracts. We find that the firms prefer a menu of linear contracts when the competition is not intense and good market condition is very likely. We also find that as the utility cost of uncertainty increases, the likelihood of using pooled contracts decreases because of the increase in risk premium. Risk aversions and uncertainties affect the profits in two ways: directly through risk premium, and indirectly through the sale rep’s selling efforts.