Equilibrium pricing and ordering policies in a two-echelon supply chain in the presence of strategic customers
Document title: Equilibrium pricing and ordering policies in a two-echelon supply chain in the presence of strategic customers
Journal: Anais da Academia Brasileira de Ciencias
Database: PERIÓDICA
System number: 000395501
ISSN: 0001-3765
Authors: 1
1
2
1
Institutions: 1Iran University of Science and Technology, Department of Industrial Engineering, Narmak, Teherán. Irán
2Sharif University, Department of Industrial Engineering, Teherán. Irán
Year:
Season: Jun
Volumen: 88
Number: 2
Pages: 1127-1150
Country: Brasil
Language: Inglés
Document type: Artículo
Approach: Aplicado, descriptivo
English abstract This paper studying the impact of strategic customer behavior on decentralized supply chain gains and decisions, which includes a supplier, and a monopoly firm as a retailer who sells a single product over a finite two periods of selling season. We consider three types of customers: myopic, strategic and low-value customers. The problem is formulated as a bi-level game where at the second level (e.g. horizontal game), the retailer determines his/her equilibrium pricing strategy in a non-cooperative simultaneous general game with strategic customers who choose equilibrium purchasing strategy to maximize their expected surplus. At the first level (e.g. vertical game), the supplier competes with the retailer as leader and follower in the Stackelberg game. They set the wholesale price and initial stocking capacity to maximize their profits. Finally, a numerical study is presented to demonstrate the impacts of strategic behavior on supply chain gain and decisions; subsequently the effects of market parameters on decision variables and total profitability of supply chain's members is studied through a sensitivity analysis
Disciplines: Ingeniería
Keyword: Ingeniería industrial,
Cadena de suministro,
Usuarios,
Gestión de ingreso,
Precios,
Teoría de juegos
Keyword: Engineering,
Industrial engineering,
Supply chain,
Customers,
Revenue management,
Pricing,
Game theory,
Prices
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