Impact of Reseller's Forecasting Accuracy on Channel Member Performance

• 成果类型: Article
• 署名作者: Chen, Ying-Ju; Xiao, Wenqiang
• 署名单位: University of California System; University of California Berkeley; New York University
• 刊物名称: PRODUCTION AND OPERATIONS MANAGEMENT
• ISSN/ISSBN: 1059-1478
• DOI: 10.1111/j.1937-5956.2012.01339.x
• 发表日期: 2012
• 页码: 1075-1089
• 关键词: forecasting accuracy; multi-tier channel; mechanism design; salesforce compensation

摘要

This article studies a three-layer supply chain where a manufacturer sells a product through a reseller who then relies on its own salesperson to sell to the end market. The reseller has superior capability in demand forecasting relative to the manufacturer. We explore the main trade-offs between the risk-reduction effect and the information-asymmetry-aggravation effect of the improved forecasting accuracy. We show that under the optimal wholesale price contract, both the manufacturer and the reseller are always better off as the reseller's forecasting accuracy improves. Nevertheless, under the menu of two-part tariffs, the manufacturer prefers the reseller to be either uninformed or perfectly informed about the market condition. We further find that the improved forecasting accuracy is beneficial for the reseller if its current forecasting system is either very poor or very good.