Open AccessComment—Managing Channel Profits: Comment
Author(s) -
K. Sridhar Moorthy
Publication year - 1987
Publication title -
marketing science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 5.938
H-Index - 127
eISSN - 1526-548X
pISSN - 0732-2399
DOI - 10.1287/mksc.6.4.375
Subject(s) - channel (broadcasting) , schedule , microeconomics , business , function (biology) , operations research , channel coordination , economics , marketing , computer science , supply chain management , supply chain , telecommunications , mathematics , management , evolutionary biology , biology
In a recent paper in this journal, Jeuland and Shugan (Jeuland, A., S. Shugan. 1983. Managing channel profits. (Summer) 239–272.) proposed a quantity discount schedule as a way of coordinating a channel. As they put it on p. 253 of their paper, “a quantity discount schedule which would fix the retailer's and hence the manufacturer's profits to some fixed linear function of total channel profits would lead the channel to maximize profits.” The purpose of this note is to show that a quantity discount schedule is for channel coordination.