Product Variety and Pricing Assortment with Channel Structure Strategy For A Manufacturer Supply Chain

In the modern scenario, the manufacturer prefers not only traditional method of selling through an independent retailer but also through an internet channel. The retailer sells alternative product supplied by various other manufacturers. In these two channel, the manufacturer and retailer construct a favourable pricing strategy for the multi choice product considering the available and expected demand from the consumers. Generally, there is always a conflict between the manufacturer and retailer in preferring items with demand variability and in adapting the costs incurred in selling through their respective channel. The manufacturer may prefer high demand variability while the retailer prefers low demand variability. The variants in the products are disclosed in internet channel comprehensibly than in other. By using Nested Logit Model, this model works out a appropriate channel deriving optimum sales to the manufacturer by analysing the variants of prices for the product accessible in two channel.