Study on Pricing Strategy and Response Method to Emergency for Substitutes

Author

Zhi-gang, Zhao ; Xiang-yang, Li

Author_Institution

Sch. of Manage., Harbin Inst. of Technol.

fYear

2006

fDate

5-7 Oct. 2006

Firstpage

354

Lastpage

358

Abstract

A supply chain system composed by two suppliers and one manufacturer was studied. Optimal pricing model was put forward for substitutes. Considering supply deficiency of the material producing one item product, two prices adjusting models were constructed. An algorithm was designed to solving these models. It is showed that the manufacturer can adjust the prices of finished products to induce market demand when the material supplying deficiency coming up caused by emergency. Proposed response method can maximize the profit of the manufacturer at the mean time of avoiding shortage. Simulated case study demonstrates the feasible and efficiency of the pricing strategy and the response method

Keywords

manufacturing systems; pricing; supply chain management; market demand management; optimal pricing model; pricing strategy; response method; supply chain system; Algorithm design and analysis; Disaster management; Forward contracts; Pricing; Production; Supply chain management; Supply chains; Technology management; Uncertainty; Virtual manufacturing; Demand management; Optimal pricing strategy; Response method; Substitutes;

fLanguage

English

Publisher

ieee

Conference_Titel

Management Science and Engineering, 2006. ICMSE '06. 2006 International Conference on

Conference_Location

Lille

Print_ISBN

7-5603-2355-3

Type

conf

DOI

10.1109/ICMSE.2006.313840

Filename

4104923