A distribution free newsvendor model with consignment policy and retailer’s royalty reduction
研究了无需求分布假设下，采用寄售政策的单周期报童问题，提出降低零售商成本并建立可持续寄售合同的方法，通过与传统政策对比证明寄售政策更优且能显著降低零售商特许权使用费。
Reducing the system cost and achieving significant profit are the key factors for every successful business sector. A consignment contract under distribution-free approach may be a fruitful combination to achieve a profitable business. This model deals with a single-period newsvendor problem with a consignment policy. The consignment policy is an agreement between any two parties, named as the consignor and the consignee. Under Stackelberg approach, firms act as leader and follower. Both parties carry some parts of the holding cost instead of one. A new policy for paying the fixed fee to the consignee is introduced. This paper considers no specific probability distribution for customer’s demand except a known mean and standard deviation. An efficient approach is proposed to reduce the retailer’s cost and building a sustainable consignment contract. The solution of this model is obtained using distribution free approach. A comparison between the traditional supply chain policy and the consignment policy is established. The price-sensitivity on demand is analysed. Some numerical examples and graphical representations are given for both traditional and consignment policy. Result proves that consignment policy is dominating over the traditional policy and a significant reduction of retailer’s royalty is found.