Examining price and service competition among retailers in a supply chain under potential demand disruption (original) (raw)
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Anais da Academia Brasileira de Ciencias, 2016
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 effect...
Coordinating a supply chain system for production, pricing and service strategies with disruptions
This paper investigates the coordination problem of a supply chain system composed of one supplier and one retailer. To coordinate, we apply revenue sharing contracts in the context of supply chain disruptions management. Herein, we consider disruptions at two factors namely demand and service sensitivity coefficient and propose a responsive pricing, service level, production and contract decisions model. Our results reveal that the proposed coordination mechanisms could lead to the supply chain system of interest achieving around 80% to 90% efficiency while satisfying win-win positions of the partners. In addition, this work illustrates that the coordinated supply chain produces more profit to the retailer. Our findings also indicate the original contracts for the non-disrupted supply chain system show some level of robustness to the scenarios that show a small increase of the market scale and service sensitivity coefficient. More specifically, the original contracts work fine as long as the increment of markets scale is less than 30% of the market base. However, for most of the cases, the production, pricing, service strategies, and contracts policies need to be adjusted to tackle the disruptions. We show the usefulness of our work by providing some numerical examples. Supply Chain Management, Operations and Supply Chain Management, etc. His research interest includes supply chain disruptions management and application of artificial intelligence in manufacturing/service planning and decision making.