Stackelberg game in VMI system with sufficient capacity considering wholesale and retail prices
Yu Yugang,Liang Liang,Guo Qiang +2 more
- pp 361-364
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This work discusses a VMI (vendor managed inventory) supply chain where one manufacturer produces and supplies a single product at a wholesale price to multiple retailers, maybe its agents, who then sell the product in dispersed and independent markets at retail prices.Abstract:
This work discusses a VMI (vendor managed inventory) supply chain where one manufacturer produces and supplies a single product at a wholesale price to multiple retailers, maybe its agents, who then sell the product in dispersed and independent markets at retail prices. The manufacturer determines wholesale price, inventory replenishment cycle, and backorder quantity by maximizing its own profit with sufficient capacity. The retailers in turn take the manufacturer's decision results as given inputs to determine the optimal retail prices to maximize their own profits. This problem is modeled as a Stackelberg game where the manufacturer is the leader and retailers are followers. The analysis of the equilibrium of the Stackelberg game and its corresponding algorithm are given. A numerical study is conducted to understand the influence of some parameters.read more
Citations
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Pricing and ordering decisions in a supply chain with imperfect quality items and inspection under buyback of defective items
TL;DR: In this paper, the economic production and inventory model in a three-layer supply chain including one distributor, one manufacturer and one retailer for a single-product and general demand functions under three scenarios is developed.
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Neural networks based vendor-managed forecasting: a case study
Atul B. Borade,Satish V. Bansod +1 more
TL;DR: In this article, a case study of a small enterprise where a vendor-managed inventory pact was in force between enterprise and a retailer is presented, various neural networks were used for demand forecasting.
References
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Channel coordination and quantity discounts
TL;DR: In this paper, the authors present a model for analyzing the impact of joint decision policies on channel coordination in a system consisting of a supplier and a group of homogeneous buyers, where the joint decision policy characterized by the unit selling price and the order quantity is coordinated through quantity discounts and franchise fees.
Journal ArticleDOI
Coordination Mechanisms for a Distribution System with One Supplier and Multiple Retailers
TL;DR: It is shown that no traditional discount scheme, based on order quantities only, suffices to optimize channelwide profits when there are multiple nonidentical retailers, and an optimal strategy is characterized, maximizing total systemwide profits in a centralized system.
Journal ArticleDOI
Discount pricing decisions in distribution channels with price-sensitive demand
S. Viswanathan,Qinan Wang +1 more
TL;DR: The results of the study demonstrate that the effectiveness of volume discount as a coordination mechanism is higher when the sensitivity of demand to price changes is higher and that perfect coordination is achieved when volume and quantity discounts are offered simultaneously.