Research Of The Problems On Sales Efforts And Selling Rice Dependent Demand Rate

Sales efforts, as one kind of the sales strategies, are widely used in marketeconomy, such as advertising, personal selling, sales promotion, public relations etc.It not only can help buyers show their advantages， but also persuade targetcustomers to buy their products. Nowadays, the quantity of demand for products isdepending on the sales efforts because of the diversity of consumers. So thequestion on the sales-efforts and sale-price-dependent demand has become a hotspot that many scholars have devoted to study it.The traditional inventory-control model with sale-effort-dependent demandrate assumed that the market demand was either price sensitive or constant. As amatter of fact, the demand is usually influenced by many factors such asadvertisement, public relations etc. In this paper, we consider coordination issuesof a deterministic demand that the demand rate relies on both sales efforts andselling price, then presented a supply-chain coordination model with suppliers offersome sales-effort-allowance.This paper expands deterministic demand variable research on basis of theexisting deterministic demand variable research. Main contributions are as follows:(1)An inventory control model with the demand rate relying on both salesefforts and selling price is considered, where the premise is the deterministicdemand. In this paper, we studied the situation of increasing sales efforts andproved the retailer’s profit is higher than that not. At last, this paper proposed amethod of finding the optimal model of the average profit.(2)A supply chain coordination problem based on sharing the sales efforts withretailer is considered. We also got the conclusion that the situation when suppliergives part of sale-effort-subsidies to retailer will make the ordering quantity ofproducts and the profit of supplier’s increasing.(3)A supply chain coordination model with quantity discount consideration isproposed on the base of the premise of efforts cost sharing. First, the optimal dynamic game analysis with quantity discount of products is given. Then asimulation case demonstrates the correctness of analytical results.