Advance Selling Strategies Research On A Three-Echelon Supply Chain

The advance selling strategy is a new promotion strategy,which has been widely used in online and offline sales when promoting products.On the one hand,the manufacturer can relieve the production pressure and reduce the production cost by presale.On the other hand,for the new type of product planned to be launched in the market,upstream enterprises usually attract consumers to buy and experience products by presale.To explore how advance selling strategies affect the multi-echelon supply chain,this paper establishes a two-advance-selling-discount model in a three-echelon supply chain.For the old type of product which has existed in the market,the paper considers a three-echelon supply chain with two advance selling discounts:one discount is between the manufacturer and the distributor,and the other is between the distributor and the retailer.For the new type of product planned to be launched in the market,the paper considers a three-echelon supply chain with two advance selling discounts:one discount is between the supplier and the retailer,and the other is between the retailer and consumers.Besides,the paper has focused on the advantages and disadvantages of the two-advance-selling-discount model,compared with the one-advance-selling-discount model and the no-advance-selling-discount model.Finally,the paper extends the model to analyze the two-advance-selling-discount model with a minimum order quantity wherein there is a constraint on the minimum advance-order quantity,and derives the condition under which the upstream enterprises should constrain on the minimum order quantity.Several results are obtained:(?)The two-advance-selling-discount model dominates the case where there is no advance purchase.(?)In the three-echelon supply chain composed of a manufacturer,a distributor and a retailer,compared with the one-advance-selling-discount model,though the manufacturer and the distributor obtain lower profits,their conditional value-at-risk significantly decreases with the two-advance-selling-discount model.Furthermore,both the manufacturer and the distributor have motivations to participate in the model.In addition,the two-advance-selling-discount model with a minimum advance-order quantity can coordinate the supply chain.(?)In the three-echelon supply chain composed of a supplier,a retailer and consumers,consumers'utility in the second period is increasing in the number of predecessors.Upstream enterprises will provide deeper advance selling discounts when consumers become more patient or predecessors have a greater influence on imitators.However,high innovation levels will drive enterprises to set high advance selling discounts.Moreover,the total demand will increase when the consumer's discount factor decreases or the impact intensity of predecessors increases.The paper also obtains the condition under which the total demand increases quickly as the innovation level changes.Finally,though the two-advance-selling-discount model with a minimum advance-order quantity cannot coordinate the supply chain,it allows the enterprises to increase their profits,and the total profit of the supply chain.