A production-inventory model for a two-echelon supply chain when demand is dependent on sales teams׳ initiatives

This paper investigates the issue of channel coordination for a two echelon supply chain consisting of one manufacturer and one retailer. In this supply chain, the demand is sensitive to promotional efforts/sales teams׳ initiatives. A production-inventory model is developed that considers the procurement cost per unit as a function of the production rate. To resolve the issues of channel coordination and promotion-based demand, a variety of...