Price Postponement in a Decentralized Newsvendor Model under Uncertain Supply and Demand

A two-level discount model for coordinating a decentralized supply chain considering stochastic price-sensitive demand

In this paper, a discount model is proposed to coordinate pricing and ordering decisions in a two-echelon supply chain (SC). Demand is stochastic and price sensitive while lead times are fixed. Decentralized decision making where downstream decides on selling price and order size is investigated. Then, joint pricing and ordering decisions are extracted where both members act as a single entity ...

Using Postponement as a Rescheduling Strategy in the Supply Chain Management under Uncertain Demand Environment

Addressing demand uncertainty is a research focus in supply chain management in recent years. In this paper, a new postponement strategy is applied. Postponement has been appreciated recently, especially in the manufacturing period of realizing mass customization. It has also been much used to respond to the demand uncertainty and usually considered in the planning period. However, the decision...

Price Postponement in a Newsvendor Model with Wholesale Price-Only Contracts

We consider a variant of the wholesale price-only contract in a simple supply chain consisting of one manufacturer and one retailer, where the manufacturer is the Stackelberg leader and the retailer is the follower. In our model, the manufacturer decides the wholesale price first, and then the retailer chooses his order quantity before the stochastic demand is realized but postpones his pricing...

Competing Suppliers under Sales-Rebate Contract and Price Sensitive Demand in a Decentralized Supply Chain

This paper studies a competition in a decentralized supply chain between two independent suppliers who sell their products to a common retailer, under sales-rebate contract, and wherein the demand is sensitive to retail prices. The inventory related operational costs are included in the chain based on the economic order quantity model. The conditions of existence and uniqueness of the retailer’...

TWO-PRICE POLICY FOR A NEWSVENDOR PRODUCT SUPPLY CHAIN WITH TIME AND PRICE SENSITIVE DEMAND by