Danyliuk N. Mathematical modeling of the forming process of enterprises’ incomes in vertical sales channels

The dissertation research reveals the main theoretical, methodological and practical aspects of income generation of enterprises – the participants of vertical sales channels taking into account their pricing strategies, as well as strategies for generating costs for joint promotion of the product in distribution channels as key factors of income maximization. The paper defines the nature and classification of distribution channels, with the focus on vertical sales channels as interconnected participant systems focused on efficient operation and conflict avoidance. The article focuses on the consideration of the concept of joint costs for advertising and communication activities, incurred by the manufacturer and the retailer, as one of the main factors influencing the formation of positive financial results of enterprises operating in sales channels. The study, using a numerical experiment, describes the features of surfaces motion, that graphically represent the multiplicative consumer demand function, respectively, for the manufacturer, the retailer and the channel as a whole, in order to further determine the effective decision-making area for constraints on income models parameters.