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Supply Chain Planning Considering Gray Markets

Valizadeh khaki, Siavash | 2012

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 43968 (01)
  4. University: Sharif University of Technology
  5. Department: Industrial engineering
  6. Advisor(s): Shavandi, Hassan
  7. Abstract:
  8. Nowadays diversion of products from authorized distribution channels to the gray markets has been considered by manufacturers. There many cases that the products of main industries are supplied through gray markets. Gray markets are divided into two categories. The first category is parallel imports where an unauthorized distributor or a third party imports the products from a low price market into a market with high price. In most researches of parallel importation it is assumed that a monopoly manufacturer distributes its products in both two markets. In the second category of parallel importation researches, it is assumed that the manufacturer distributes the products in a certain market and an unauthorized distributer imports the product in other market. In this study we consider the first category assumptions.
    In this study, we consider the parallel importation with a competitor that produces substitutable products in each market. We analyze two scenarios considering the competition in low-price market or high-price one. The pricing strategy of manufacturer is analyzed in parallel and competition environment. We also analyze the competition effect on the manufacturer profit and performance. We also determine the conditions that manufacturer benefits from parallel importation
  9. Keywords:
  10. Supply Chain ; Price Competition ; Game Theory ; Gray Markets ; Parallel Importation

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