SAP Hybris

Direct Indirect Use Production MRO Accounting Cost of Goods Sold Selling, General & Admin exp Production impact Any delay will delay production Less direct impact Processing cost relative to value of transaction Lo w High Number of transaction Low High

Buy-back Contracts v Features Ø   A buy-back or return clause in the contract allows retailer to return unsold inventory up to a specified amount, at a agree-upon price. Ø   Common in book industry Ø   In auto-industry, manufacturer provides holding-cost subsidies where manufacturer gives certain amount to retailer for every unit held in the inventory over a period. v Advantages Ø   Increases the supply chain profit Ø   More order from retailers to the manufacturer v Disadvantages Ø   Buy-back is not attractive with more cost of return Ø   Retailer may exert less effort to sell Ø   Information distortion at the retailer level Revenue sharing Contracts v Features Ø   Manufacturer charges low whole sale price to retailer and shares a fraction of retailer’s revenue. Ø   Applicable in blockbuster movie rentals and movie studios for videos. v Advantages Ø   Best suited where cost of return is ...

Types of Auction and the characteristics v   Ascending-bid auction (English Auction) •        Real time interactive auction •        Bidders present physically or electronically •        Seller gradually increases price- bidders drop out until one bidder remain to win the auction. v   Descending-bid auction (Dutch Auction) •        Real time interactive auction •        Bidders present physically or electronically •        Seller gradually decreases price from high value. •        The first bidder, who accepts the current price, wins the bid. •        These auctions are called Dutch auctions because flowers have long been sold in the Netherlands using this procedure v   First price sealed bid •   ...