Question

Question 1:

1. How can a firm use pricing to change demand patterns?
2. Why would a firm want to offer pricing promotions in its peak-demand periods?

Question 2:

3. What is the bullwhip effect and how does it relate to lack of coordination in a supply chain?
4. In what way can improper incentives lead to a lack of coordination in a supply chain? What countermeasures can be used to offset this effect?
5. How do trade promotions and price fluctuations affect coordination in a supply chain? What pricing and promotion policies can facilitate coordination?

Answer 1