Study of the coordination mechanism of agent and dealer
Liang Zhi-jie · Journal of Shaanxi Institute of Technology · 2004
DDFDIR (different discount for different dealers in common replenishment) operation mechanism is devised to optimize the cost of agent and dealers. It is presented that, to make dealers accept the coordination, agent must offer different price discounts for different dealers, and assure that dealer have at least S% saving. In DDFDIR system, period of common replenishment is T_0,and dealer's replenishment period is integer multiple of T_0 (T_i=x_iT_0, x_i is integer). A model is constructed to solve T_0 and y. Case study shows that system coordination results in good performance when s_0 and s_0′ excess the given threshold, savings increase as s_0 and s_0′ become larger, and agents may be the biggest winner.