Competing manufacturers in a retail supply chain: On contractual form and coordination

It is common for a retailer to sell products from competing manufacturers. How then should the firms manage their contract negotiations? The supply chain coordination literature focuses either on a single manufacturer selling to a single retailer or one manufacturer selling to many (possibly competing) retailers. We find that some key conclusions from those market structures do not apply in our setting, where multiple manufacturers sell through a single retailer. We allow the manufacturers to compete for the retailer's business using one of three types of contracts: a wholesale-price contract, a quantity-discount contract, or a two-part tariff. It is well known that the latter two, more sophisticated contracts enable the manufacturer to coordinate the supply chain, thereby maximizing the profits available to the firms. More importantly, they allow the manufacturer to extract rents from the retailer, in theory allowing the manufacturer to leave the retailer with only her reservation profit. However, we show that in our market structure these two sophisticated contracts force the manufacturers to compete more aggressively relative to when they only offer wholesale-price contracts, and this may leave them worse off and the retailer substantially better off. In other words, although in a serial supply chain a retailer may have just cause to fear quantity discounts and two-part tariffs, a retailer may actually prefer those contracts when offered by competing manufacturers. We conclude that the properties a contractual form exhibits in a one-manufacturer supply chain may not carry over to the realistic setting in which multiple manufacturers must compete to sell their goods through the same retailer. © 2010 INFORMS.

Co-orientation of replication and transcription preserves genome integrity.

In many bacteria, there is a genome-wide bias towards co-orientation of replication and transcription, with essential and/or highly-expressed genes further enriched co-directionally. We previously found that reversing this bias in the bacterium Bacillus subtilis slows replication elongation, and we proposed that this effect contributes to the evolutionary pressure selecting the transcription-replication co-orientation bias. This selection might have been based purely on selection for speedy replication; alternatively, the slowed replication might actually represent an average of individual replication-disruption events, each of which is counter-selected independently because genome integrity is selected. To differentiate these possibilities and define the precise forces driving this aspect of genome organization, we generated new strains with inversions either over approximately 1/4 of the chromosome or at ribosomal RNA (rRNA) operons. Applying mathematical analysis to genomic microarray snapshots, we found that replication rates vary dramatically within the inverted genome. Replication is moderately impeded throughout the inverted region, which results in a small but significant competitive disadvantage in minimal medium. Importantly, replication is strongly obstructed at inverted rRNA loci in rich medium. This obstruction results in disruption of DNA replication, activation of DNA damage responses, loss of genome integrity, and cell death. Our results strongly suggest that preservation of genome integrity drives the evolution of co-orientation of replication and transcription, a conserved feature of genome organization.

Accessibility, availability and affordability of anti-malarials in a rural district in Kenya after implementation of a national subsidy scheme.

BACKGROUND: Poor access to prompt and effective treatment for malaria contributes to high mortality and severe morbidity. In Kenya, it is estimated that only 12% of children receive anti-malarials for their fever within 24 hours. The first point of care for many fevers is a local medicine retailer, such as a pharmacy or chemist. The role of the medicine retailer as an important distribution point for malaria medicines has been recognized and several different strategies have been used to improve the services that these retailers provide. Despite these efforts, many mothers still purchase ineffective drugs because they are less expensive than effective artemisinin combination therapy (ACT). One strategy that is being piloted in several countries is an international subsidy targeted at anti-malarials supplied through the retail sector. The goal of this strategy is to make ACT as affordable as ineffective alternatives. The programme, called the Affordable Medicines Facility - malaria was rolled out in Kenya in August 2010. METHODS: In December 2010, the affordability and accessibility of malaria medicines in a rural district in Kenya were evaluated using a complete census of all public and private facilities, chemists, pharmacists, and other malaria medicine retailers within the Webuye Demographic Surveillance Area. Availability, types, and prices of anti-malarials were assessed. There are 13 public or mission facilities and 97 medicine retailers (registered and unregistered). RESULTS: The average distance from a home to the nearest public health facility is 2 km, but the average distance to the nearest medicine retailer is half that. Quinine is the most frequently stocked anti-malarial (61% of retailers). More medicine retailers stocked sulphadoxine-pyramethamine (SP; 57%) than ACT (44%). Eleven percent of retailers stocked AMFm subsidized artemether-lumefantrine (AL). No retailers had chloroquine in stock and only five were selling artemisinin monotherapy. The mean price of any brand of AL, the recommended first-line drug in Kenya, was $2.7 USD. Brands purchased under the AMFm programme cost 40% less than non-AMFm brands. Artemisinin monotherapies cost on average more than twice as much as AMFm-brand AL. SP cost only $0.5, a fraction of the price of ACT. CONCLUSIONS: AMFm-subsidized anti-malarials are considerably less expensive than unsubsidized AL, but the price difference between effective and ineffective therapies is still large.

Evolving brand-name and generic drug competition may warrant a revision of the Hatch-Waxman Act.

The evolution of pharmaceutical competition since Congress passed the Hatch-Waxman Act in 1984 raises questions about whether the act's intended balance of incentives for cost savings and continued innovation has been achieved. Generic drug usage and challenges to brand-name drugs' patents have increased markedly, resulting in greatly increased cost savings but also potentially reduced incentives for innovators. Congress should review whether Hatch-Waxman is achieving its intended purpose of balancing incentives for generics and innovation. It also should consider whether the law should be amended so that some of its provisions are brought more in line with recently enacted legislation governing approval of so-called biosimilars, or the corollary for biologics of generic competition for small-molecule drugs.

Orientation, Flow, and Clogging in a Two-Dimensional Hopper: Ellipses vs. Disks

Two-dimensional (2D) hopper flow of disks has been extensively studied. Here, we investigate hopper flow of ellipses with aspect ratio $\alpha = 2$, and we contrast that behavior to the flow of disks. We use a quasi-2D hopper containing photoelastic particles to obtain stress/force information. We simultaneously measure the particle motion and stress. We determine several properties, including discharge rates, jamming probabilities, and the number of particles in clogging arches. For both particle types, the size of the opening, $D$, relative to the size of particles, $\ell$ is an important dimensionless measure. The orientation of the ellipses plays an important role in flow rheology and clogging. The alignment of contacting ellipses enhances the probability of forming stable arches. This study offers insight for applications involving the flow of granular materials consisting of ellipsoidal shapes, and possibly other non-spherical shapes.

Effect of bend orientation on life and puncture point location due to solid particle erosion of a high concentration flow in pneumatic conveyors

An investigation into predicting failure of pneumatic conveyor pipe bends due to hard solid particle impact erosion has been carried out on an industrial scale test rig. The bend puncture point locations may vary with many factors. However, bend orientation was suspected of being a main factor due to the biased particle distribution pattern of a high concentration flow. In this paper, puncture point locations have been studied with different pipe bend orientations and geometry (a solids loading ratio of 10 being used for the high concentration flow). Test results confirmed that the puncture point location is indeed most significantly influenced by the bend orientation (especially for a high concentration flow) due to the biased particle distribution and biased particle flux distribution.

Does culture affect a brand's personality?

Global branding brings with it exposure to an increasingly culturally-diverse audience. Examples of Islamic finance products being consumed by non-Muslims, and designer labels being adopted, by those outside of their intended target audience; seem to suggest that brands are being shaped more and more by consumers. Within current literature on branding, and cross-cultural consumer behaviour; there appears to have emerged a difference of opinion - as to whether a consumer’s culture has any bearing on their decision making; or subsequent influence brand personalities. The purpose of this paper is to present existing evidence; as a basis for undertaking future research.

‘The Pinocchio Effect’ – when managing the brand creation process, across cultures

In global marketing and international management, the fields of Branding and Culture are well discussed as separate disciplines; within both academia and industry. However, there appears to be limited supporting literature, examining brands and culture as a collective discipline. In addition, environmental factors such as ethnicity, nationality and religion are also seen to play a significant role. This in itself adds to the challenges encountered, by those looking to critically apply learning and frameworks, to any information gathered. In the first instance, this paper tries to bring aspects together from Branding and Culture and in doing so, aims to find linkages between the two. The main purpose of this paper is to distil current brand thinking and explore what impact cross-cultural, cross-national, and ethnic interactions have on a brand’s creation. The position of the authors is that without further understanding in this field, a brand will experience what has been termed by them as the ‘Pinocchio Effect’. Pinocchio was a puppet who longed to become a real human being; but sadly encountered difficulties. The conclusion presented is that the critical long-term success of a brand lies in three areas: how it is created; the subsequent associated perceptions; and more specifically in the reality of the relationships that it enjoys. Collectively these processes necessitate an appraisal of connecting strategic management procedures and thinking. Finally, this paper looks into proposing future methods for brand evaluation and strategic management. The aim is to stimulate further thinking in a field; which transcends national, ethnic and cultural boundaries - in the interests of developing new insight, and to provide a platform for marketers to develop more effective communications.

Investigating antecedents and consequences of brand identification

Purpose – This study aims to analyse the influences of prestige, satisfaction, and communication on brand identification and to show how brand identification influences word-of-mouth and brand repurchase. Design/methodology/approach – A theoretical model is developed and tested with a sample of car owners in the UK of two global car brands. Structural equation modelling was used with LISREL 8.54 and the maximum likelihood (ML) method. Findings – This paper draws mainly on the theory of social identity to provide a comprehensive understanding of conditions under which brand owners are likely to identify with their brand and the bases and consequences of such identification. It was shown that prestige, satisfaction, and communication effect brand identification. The study confirms that consumers' development of relationships via brand identification results in word of mouth about the brand and intentions to repurchase the brand. Furthermore, it was found that brand identification fully mediates the influences of prestige, satisfaction, and communication on word of mouth and brand repurchase. Research limitations/implications – The focus was on one country and one industry. Practical implications – Managers are provided with strategies that enhance the identification of their customers with their brand so that they can strengthen the customers' brand identification. Areas for future research are suggested. For instance, it could be interesting to test the model in a different industry and/or cultural context. Originality/value – Very few previous studies have looked at brand identification which is surprising considering it is such an important variable to influence word-of-mouth and brand repurchase. The study tests three antecedents to brand identification and two outcomes that have not been investigated previously. Overall, the study adds knowledge in this somewhat neglected area.