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Note. The Role of Returns Policies in Pricing and Inventory Decisions for Catalogue Goods

Author

Listed:
  • Hamilton Emmons

    (Weatherhead School of Management, Case Western Reserve University, Cleveland, Ohio 44106-7235)

  • Stephen M. Gilbert

    (Weatherhead School of Management, Case Western Reserve University, Cleveland, Ohio 44106-7235)

Abstract

Manufacturers often use returns policies to encourage retailers to stock and price items more aggressively. We focus on the effect that such policies have on both a retailer's and a manufacturer's profits when the retailer must commit prior to the selling season to both a stocking quantity and a price at which to sell an item. Such a commitment is often necessary for retailers who sell primarily through catalogues.

Suggested Citation

  • Hamilton Emmons & Stephen M. Gilbert, 1998. "Note. The Role of Returns Policies in Pricing and Inventory Decisions for Catalogue Goods," Management Science, INFORMS, vol. 44(2), pages 276-283, February.
  • Handle: RePEc:inm:ormnsc:v:44:y:1998:i:2:p:276-283
    DOI: 10.1287/mnsc.44.2.276
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    References listed on IDEAS

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