Template-Type: ReDIF-Paper 1.0
Author-Name: le Blanc, H.M.
Author-Name-Last: le Blanc
Author-Name: Cruijssen, F.
Author-Name-Last: Cruijssen
Author-Name-First: Frans
Author-Name: Fleuren, H.A.
Author-Name-Last: Fleuren
Author-Name: de Koster, M.B.M.
Author-Name-Last: de Koster
Author-Name-First: René
Title: Factory Gate Pricing: An Analysis of the Dutch Retail Distribution
Abstract: Factory Gate Pricing (FGP) is a relatively new phenomenon in retail distribution. Under FGP, products are no longer delivered at the retailer distribution center, but collected by the retailer at the factory gates of the suppliers. Owing to both the asymmetry in the distribution networks (the supplier sites greatly outnumber the retailer distribution centers) and the better inventory and transport coordination mechanisms, this is likely to result in high savings. A mathematical model was used to analyze the benefits of FGP for a case study in the Dutch retail sector. Extensive numerical results are presented to show the effect of the orchestration shift from supplier to retailer, the improved coordination mechanisms, and sector-wide cooperation.
Creation-Date: 2004-08-06
File-URL: https://repub.eur.nl/pub/1443/ERS%202004%20023%20LIS.pdf
File-Format: application/pdf
Series: RePEc:ems:eureri
Number: ERS-2004-023-LIS
Classification-JEL: L22, M, M11, R4
Keywords: factory gate pricing, retail distribution, supply chain management
Handle: RePEc:ems:eureri:1443