Group Buying of Competing Retailers with Strategic Inventory

Group buying involves cooperation and competition among multiple retailers, strategic inventory can affect this relationship. To investigate the interaction between them, we consider a two-tier distribution channel consisting of one supplier two competing retailers who hold inventory, explore effect on operational decisions profits all members supply chain. In research, make major contribution by integrating into group buying. Furthermore, another examining impact in environment. We construct Stackelberg game, where is leader are followers. find that will under only when holding cost low or basic wholesale price high. Moreover, higher detrimental to while beneficial supplier, intensified both supplier. Interestingly, contrary common view should be reduced not held, have incentives inventory. The also prefers because benefits her. Therefore, achieves win–win outcome for retailers. addition, improve chain performance consumer surplus.