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【Mingli Lecture 2022, Issue 57】 Indiana University Associate Professor Krista J. Li was invited to report

[Mingli Lecture, Issue 57, 2022] Indiana University

Associate Professor Krista J. Li was invited to report

On November 17, [Mingli Lecture Hall, Issue 57, 2022], we were honored to invite Associate Professor Krista J. Li of Indiana University to bring you an academic report entitled "Channel Coordination of Storable Goods".Professor Krista first pointed out the two commercial phenomena of retailers hoarding and manufacturers' promotion, while manufacturers' promotion often provides opportunities for retailers to hoard, resulting in the promotion not playing its due role. In view of the above business phenomena and supply chain coordination problems, Professor Krista constructed a two-stage dynamic model, which analyzed when the manufacturer should limit the storage capacity of the retailer and when it should promote sales by comparing the optimal decisions of the manufacturer under three conditions of not allowing, restricting and allowing the retailer to stock. Later, Professor Krista shared several important findings from the study: for example, in the past, people believed that manufacturers must limit retailers' hoarding behavior, but the study showed that only when the storage cost is relatively low, manufacturers need to limit retailers' hoarding; For another example, in the past, manufacturers did not know when to promote, but this study found that when retailers could not stock and the storage cost of products was relatively low, manufacturers could take promotions; Finally, this study proposes that retailers' hoarding improves channel coordination to a certain extent and increases manufacturers' profits, so manufacturers should design products to be easier to store.

After the report, Professor Krista had a heated discussion and exchange with the participating teachers and students on the hot research directions. The report received a warm response and was unanimously praised by the teachers and students.

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