Title :
Performance Comparisons of Supply Chain between Pushand Pull Models with Competing Retailers
Author :
Zhang, Xiaohong ; Lv, Liping
Author_Institution :
Sch. of Politics & Public Adm., Soochow Univ., Suzhou
Abstract :
In this paper we study the push and pull model of supply chain with a price-sensitive demand, in which a supplier sells a single product to competing retailers who then sell the product with the market price that equates the total supply with demand, and compare the performance of supply chain between these two different models. We prove that for the multiplicative form of end-customer demand, at optimality, the wholesale price, order quantity and the retail price in pull model are greater than in push model, respectively. We further demonstrate that there is an interesting contrast: the supplier obtains greater profit in pull models than in push model, but each retailer obtains less profit in push model than in push model.
Keywords :
retailing; supply and demand; supply chain management; competing retailer; end-customer demand; market price; price-sensitive demand; push and pull model; retail price; supply chain; wholesale price; Assembly systems; Contracts; Marketing and sales; Stochastic processes; Supply chain management; Supply chains; Uncertainty; Virtual manufacturing;
Conference_Titel :
Wireless Communications, Networking and Mobile Computing, 2008. WiCOM '08. 4th International Conference on
Conference_Location :
Dalian
Print_ISBN :
978-1-4244-2107-7
Electronic_ISBN :
978-1-4244-2108-4
DOI :
10.1109/WiCom.2008.1601