Coordination of cooperative advertising in a two-period fashion and textiles supply chain

Abstract

Previous studies related to cooperative advertising mainly focus on the one-period supply chain. In the fashion and textiles (FT) supply chain, the demand of most FT products (fashion clothing, vogue handbags, fashion shoes, and so on) varies over time due to the trends of fashion. In these conditions, a decision-making framework with a multiple-period supply chain becomes more realistic. In view of this, we investigate the optimal cooperative advertising strategies in a two-period FT supply chain consisting of a manufacturer and a retailer in two different scenarios: (i) each channel member makes decisions within a cooperative program; (ii) the retailer is vertically integrated with a manufacturer. Also, we introduce a two-way subsidy contract to coordinate the supply chain. © 2014 Yi He et al.