In today’s global competition, companies are obliged to go to market using multiple channels strategy for various reasons. However, channel conflict is inevitable in multi-channel structures causing sharp decreases in the demand of one or more channels. In this article, a system dynamic model was developed to simulate the complex multiple channel structure and various factors that affect the demand and channel conflict. The model aims to simulate the real situation of the supplier decision maker who has to take fast decisions in one of the various variables that he controls to achieve maximum profits and minimum channel conflict. The model was validated using real data of a major consumer electronics supplier in Egypt that has traditional distributors and Hypermarkets as two different channels. Various policies of inventory allocations in each channel and different promotion rates were tested in order to achieve the objective of maximizing supplier profit and minimizing channel conflict. It was found that the policy of allocating the inventory with the equal quantity in both channels with a promotion rate of one promotion per month in the hypermarkets is the optimal policy.

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Date created

• 2009 July 26-2009 July 30

Type

• Document

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• Processing documentation available at: https://wiki.albany.edu/display/SCA/Processing+Ingested+Digital+Files

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• Creative Commons BY-NC-ND Attribution-NonCommercial-NoDerivs 4.0 International

  
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ITEM CONTEXT

Part of

4818cb531cdd68d6ec6af3f291216fc7

Scope and Contents

Part of

b3584c6b53c3f58e0202549d7d851f84

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Part of

23d738ba88f8333bc39725f9cb5bd0b8

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Collection

System Dynamic Society Records

Scope and Contents

Collecting area

• This collection is part of the University Archives