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Note. The Role of Returns Policies in Pricing and Inventory Decisions for Catalogue Goods

Hamilton Emmons, Stephen M. Gilbert

Management Science · 1998 · Volume 44 · Issue 2

DOI: 10.1287/mnsc.44.2.276

Abstract

Manufacturers often use returns policies to encourage retailers to stock and price items more aggressively. We focus on the effect that such policies have on both a retailer's and a manufacturer's profits when the retailer must commit prior to the selling season to both a stocking quantity and a price at which to sell an item. Such a commitment is often necessary for retailers who sell primarily through catalogues.

Keywords

Pricing, Returns Policies, Newsboy, Manufacturing/Marketing Interface, Supply Chain

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