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Integrating Distribution Strategy and Tactics: A Model and an Application

Author

Listed:
  • V. Kasturi Rangan

    (Graduate School of Business Administration, Harvard University, Soldiers Field Road, Boston, Massachusetts 02163)

  • Ramchandran Jaikumar

    (Graduate School of Business Administration, Harvard University, Soldiers Field Road, Boston, Massachusetts 02163)

Abstract

Designing distribution systems requires two decisions, one strategic (i.e., the number of levels between the producer and the customer) and the other tactical (i.e., channel management policies such as trade discounts and rebates). While the modeling literature focuses on one or the other, evidence from the field indicates that the two decisions are in fact interactive. In this paper, we develop and then apply an integrated model that solves the strategic issue of channel levels and the tactical issue of price rebates simultaneously.

Suggested Citation

  • V. Kasturi Rangan & Ramchandran Jaikumar, 1991. "Integrating Distribution Strategy and Tactics: A Model and an Application," Management Science, INFORMS, vol. 37(11), pages 1377-1389, November.
  • Handle: RePEc:inm:ormnsc:v:37:y:1991:i:11:p:1377-1389
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    File URL: http://dx.doi.org/10.1287/mnsc.37.11.1377
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    Citations

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    Cited by:

    1. Cai, Gangshu (George) & Zhang, Zhe George & Zhang, Michael, 2009. "Game theoretical perspectives on dual-channel supply chain competition with price discounts and pricing schemes," International Journal of Production Economics, Elsevier, vol. 117(1), pages 80-96, January.
    2. repec:eee:jouret:v:91:y:2015:i:4:p:569-585 is not listed on IDEAS
    3. Jaffe, Eugene Donald & Yi, Ling, 2007. "What are the drivers of channel length? Distribution reform in The People's Republic of China," International Business Review, Elsevier, vol. 16(4), pages 474-493, August.
    4. Teichmann, Isabel & von Schlippenbach, Vanessa, 2015. "Collusive effects of a monopolist's use of an intermediary to deliver to retailers," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 112948, Verein für Socialpolitik / German Economic Association.
    5. Kleijn, M.J. & Dekker, R., 1997. "Using break quantities for tactical optimisation in multistage distribution systems," Econometric Institute Research Papers EI 9737/A, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.
    6. Ross, Anthony D., 2000. "Performance-based strategic resource allocation in supply networks," International Journal of Production Economics, Elsevier, vol. 63(3), pages 255-266, January.
    7. Isabel Teichmann & Vanessa von Schlippenbach, 2014. "Collusive Effects of a Monopolist's Use of an Intermediary to Deliver to Retailers," Discussion Papers of DIW Berlin 1440, DIW Berlin, German Institute for Economic Research.
    8. Dekker, R. & Frenk, J.B.G. & Kleijn, M.J. & Piersma, N. & de Kok, T.G., 1995. "On the use of break quantities in multi--echelon distribution systems," Econometric Institute Research Papers EI 9548-/A, Erasmus University Rotterdam, Erasmus School of Economics (ESE), Econometric Institute.

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