Title :
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
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;
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
DOI :
10.1109/SOLI.2008.4686604
