Note. The role of returns policies in pricing and inventory decisions for catalogue goods. (English) Zbl 0989.90043

Emmons, Hamilton; Gilbert, Stephen M.

Manage. Sci. 44, No. 2, 276-283 (1998).

Summary: Manufacturers often use returns policies to encourage retailers to stock and price items more aggressively. We focus on the effect that such policies have on both a retailer’s and a manufacturer’s profits when the retailer must commit prior to the selling season to both a stocking quantity and a price at which to sell an item. Such a commitment is often necessary for retailers who sell primarily through catalogues.

MSC:

90B30	Production models
90B60	Marketing, advertising
91B24	Microeconomic theory (price theory and economic markets)

Keywords:

pricing; returns policies; newsboy; manufacturing/marketing interface; supply chain