Pricing competition and coordination of a supply chain with duopolistic retailers

This paper considers the pricing and order coordination decisions in a two-echelon supply chain with one manufacturer who supplies a single product to duopolistic retailers, whose demands interact with the assumption of being price-sensitive. The problem is analyzed under the Stackelberg structure, in which the manufacturer acting as a leader declares her wholesale price and a common-replenishment epochs (CRE) schedule to competitive retailers, and the duopolistic retailers acting as followers respond with their sales prices and associated order policies. The effects of CRE policy on the optimal decisions are analyzed. And the numerical example is presented to confirm all the results.