An Inventory Coordination Scheme of Single-Period Products under Price-Dependent Demand

It is normally that the enterprises have partial demand information about the single-period products due to the short sales period and quickly demand changes. Under price-dependent demand, the demand uncertainty will be larger. In this paper, the maximum entropy formulism is employed to establish a model to find the most possible distribution. Then it discusses the independent inventory decision and the integrated inventory decision in a supply chain with one retailer and one supplier, and investigates the relationship between the retail price and the wholesale price. In order to optimize the whole system, it puts forward a quantity discount scheme based on the decision-making entropy-weight. As it is based on the integrated decision, the scheme is an effective method to optimize the whole profit. The scheme is feasible because it considers the possible profit before coordination, the marketing competition, and the retailer´s decision-making power to the retail price. Both the retailer and the supplier obtain more profit after coordination.