Pricing competition and order coordination of supply chain with duopolistic retailers

This paper considers the pricing and order coordination decisions in a two- echelon supply chain with one manufacture who supplies a single product to duopolistic retailers, whose demands interact with the assumption of being price-sensitive. The problem is analyzed under the Stackelberg structure, in which the manufacture acting as a leader declares her wholesale price and a common-replenishment-epochs (CRE) schedule to competitive retailers, and the duopolistic retailers acting as followers respond with their sales prices and associated order policies. Both of the effect of CRE strategy on competitors´ decisions including retail price and order policy and the effect of CRE strategy on market spit between retailers are analyzed. And the numerical example is presented to confirm all the results.