| Channel policies are the set of rules that govern the trading relationships between firms in a supply chain (e.g., a manufacturer-retailer relationship). Since channel policies regulate how companies interact with one another, an understanding of the effects of such policies is critical to efforts that attempt to create value by improving inter-firm coordination and supply chain integration. This dissertation explores three channel policies: channel rebates, price protection, and returns. A channel rebate is a payment from a manufacturer to a retailer based on retailer sales to end consumers. Price protection is a subsidy for holding inventory when the wholesale price drops. Returns is a commitment to buy back unsold units for a credit.; Channel policies impact the financial performance of the firms in the supply chain by influencing the behavior of the downstream partner. This in turn effects the profitability of both firms. This dissertation describes the behaviors induced by channel policies and their effects on firm and supply chain performance. We describe how channel policies can be used to improve supply chain performance in a way that is attractive for both parties. |
