Abstract
The transactions of books and magazines in Japan have been made under the resale price maintenance and consignment sale systems. Nowadays, the return rate of books and magazines has reached approximately 40 percent of the quantity of publications. This is a serious problem from the viewpoints of both business and the environment. On one hand, a new sale system where the wholesale price is inexpensive while the buyback price is cheap has been programmed and practiced. In the new sale system, the wholesale price and buyback price are important contract parameters. In this article, we formulate a book and magazine distribution system with publisher and retail store as a mathematical model. Then, a new decision procedure for contract parameters such as the wholesale price and buyback price is discussed and suggested using the conventional coordination approach and game theory.
| Original language | English |
|---|---|
| Pages (from-to) | 76-83 |
| Number of pages | 8 |
| Journal | Journal of Japan Industrial Management Association |
| Volume | 63 |
| Issue number | 2 |
| Publication status | Published - Dec 1 2012 |
Keywords
- Buyback contract
- Consignment sale system
- Coordination approach
- Incentive compatible condition
- Nash bargaining solution
- Resale price maintenance system
ASJC Scopus subject areas
- Strategy and Management
- Management Science and Operations Research
- Industrial and Manufacturing Engineering
- Applied Mathematics