The win-win analysis of pricing on the supply chain

Supply Chain Management (SCM) is a key issue, a trend and a need in the current business environment. Its essence is that when firms in a supply chain collaborate, it leads to a win-win situation or multiple wins, where all firms will benefit. By setting up a simple quantitative model, it can be shown how and to what extent win-win situation can occur in a supply chain partnership environment. Take a producer and retailer as an example, if they cooperate in pricing, the total profits will be greatly improved and split fairly between the manufacturer and the retailer.