The Influence of Expected Demands Difference on Slotting Allowances: A Simulation Research Based on NSGA-II Algorithm

This paper presents a multi-agent simulation model of a marketing channel which is comprised by a supplier and a retailer developed by Repast J and NSGA-II. A series of experiment scenarios were executed on this simulation model and some useful findings about the effect of the difference between the expected demands of the supplier and retailer on slotting allowances were revealed. The findings indicate that when the retailer's expected demand is higher, the marketing channel will charge slotting allowances to increase their expected profits; when the supplier's expected demand is higher, the rational choice is to forbid charging slotting allowances; when the expected demands are equal, it makes no difference to the marketing channel whether slotting allowances are paid.