Risk Management through Flexible Capacity Allocation and Price Control – Auctions in the New Car Sales Process

Part of the Lecture Notes in Logistics book series (LNLO)

Abstract

Auctions are already used in the automotive industry on a regular basis in two areas. They are applied in used car sales (cf. Yaron 2008, p. 325 ff.; Berger 2009, p. 10 ff.) and in procurement as reverse auctions, in which suppliers bid to win the order (cf. Talluri/van Ryzin 2004, p. 243). In sales of new automobiles there is no comprehensive application of auctions in place so far. This research proposes a model for a forward auction with one supplier and a large number of bidders for the indirect sales of new vehicles aiming at risk reduction in a manufacturer’s sales channel. Based on characteristics of indirect car sales, the auction model is defined and explained by a process flow. Based on the proposed auction model, challenges are discussed and solutions are suggested.

Keywords

Price Discrimination Customer Order Revenue Management Original Equipment Manufacturer Sales Promotion 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2013

Authors and Affiliations

  1. 1.BMW AGMünchenGermany
  2. 2.StrategyMunich University of Applied SciencesMünchenGermany

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