Competitive pricing policies in a two-echelon supply chain for a deteriorating item

Author

Dong, Junfeng ; Du, Shaofu ; Liang, Liang

Author_Institution

Sch. of Manage., Univ. of Sci. & Technol. of China, Hefei

Volume

1

fYear

2008

fDate

12-15 Oct. 2008

Firstpage

1316

Lastpage

1322

Abstract

This paper investigates the optimal competitive pricing policies in a two-echelon competitive supply chain with one manufacturer and one retailer for a single deteriorating item. A distributed scenario where the manufacturer and the retailer make their decisions independently and simultaneously is considered. Nash game approach is employed to formulate the structure of supply chain and analyze interactions between the echelons. The existence of Nash equilibrium is guaranteed. Moreover, comparison between Nash equilibrium and system optimal solution is given. Besides, several useful managerial insights are derived and discussed through a numerical example and sensitivity analyses.

Keywords

decision making; game theory; pricing; retailing; sensitivity analysis; supply chain management; Nash game approach; decision making; deteriorating item; optimal competitive pricing policy; retailing; sensitivity analysis; two-echelon supply chain; Degradation; Game theory; Liquids; Nash equilibrium; Pricing; Pulp manufacturing; Sensitivity analysis; Supply chain management; Supply chains; Technology management; deteriorating item; distributed supply chain; game theory; pricing policies;

fLanguage

English

Publisher

ieee

Conference_Titel

Service Operations and Logistics, and Informatics, 2008. IEEE/SOLI 2008. IEEE International Conference on

Conference_Location

Beijing

Print_ISBN

978-1-4244-2012-4

Electronic_ISBN

978-1-4244-2013-1

Type

conf

DOI

10.1109/SOLI.2008.4686604

Filename

4686604