Optimal (R, Q) policy and pricing for two-echelon supply chain with lead time and retailer’s service-level incomplete information

Authors

  • A. Ghahghaei Department of Industrial Engineering, Alzahra University, Tehran, Iran
  • M. Esmaeili Department of Industrial Engineering, Alzahra University, Tehran, Iran
  • M. S. Naghavi Department of Industrial Engineering, Alzahra University, Tehran, Iran
Abstract:

Many studies focus on inventory systems to analyze different real-world situations. This paper considers a two-echelon supply chain that includes one warehouse and one retailer with stochastic demand and an up-to-level policy. The retailer’s lead time includes the transportation time from the warehouse to the retailer that is unknown to the retailer. On the other hand, the warehouse is unaware of retailer’s service level. The relationship between the retailer and the warehouse is modeled based on the Stackelberg game with incomplete information. Moreover, their relationship is presented when the warehouse and the retailer reveal their private information using the incentive strategies. The optimal inventory and pricing policies are obtained using an algorithm based on bi-level programming. Numerical examples, including sensitivity analysis of some key parameters, will compare the results between the Stackelberg models. The results show that information sharing is more beneficial to the warehouse rather than the retailer.

Upgrade to premium to download articles

Sign up to access the full text

Already have an account?login

similar resources

Two-echelon Supply Chain Considering Multiple Retailers with Price and Promotional Effort Sensitive Non-linear Demand

This study deals with the effects of a supply chain (SC) with single product, multiple retailers and a manufacturer, where the manufacturer(he) produces lotsize of the product that contains a random portion of imperfect quality item. The imperfect quality products are sold in a secondary shop. The new contribution of this paper is a new non-linear demand function. Demand of the end customers va...

full text

Pricing Decision in a Two-Echelon Supply Chain with Competing Retailers Under Uncertain Environment

*Correspondence: [email protected] 1School of Economics and Management, Tongji University, Siping Road, Shanghai 200092, China Full list of author information is available at the end of the article Abstract This paper explores a supply chain pricing competition problem in a two-echelon supply chain with one manufacturer and two competing retailers. The manufacturing costs, sales costs, and ma...

full text

Coordination of pricing and cooperative advertising for perishable products in a two-echelon supply chain: A bi-level programming approach

In this article the coordination of pricing and cooperative advertising decisions in one-manufacturer one-retailer decentralized supply chain with different market power for channel members is studied. The products are both perishable and substitutable. The problem is modeled as a nonlinear bi-level programming problem to consider both retailer and manufacturer decisions about prices and advert...

full text

Simultaneous Pricing, Routing, and Inventory Control for Perishable Goods in a Two-echelon Supply Chain

Due to the rapid development of technology in recent years, market competition and customer expectations have increased more than ever. In this situation, it is vital for businesses survival to determine the appropriate policy for inventory control, pricing, and routing, and decisions regarding each of them are often made separately. If the products have a perishable nature, it will be more imp...

full text

coordination for the joint determination of ordering policy and service level in decentralized supply chain with unspecified lead time

in this paper a two-stage supply chain with a buyer and seller have been studied. it is assumed that lead time is probabilistic and demand is fixed. in the decentralized model it can be observed each supply chain member try to make the decision to maximize their profits and it will effect on the other members of supply chain and in the comparison with centralized model with assuming the seller ...

full text

Pricing decisions in a two-echelon decentralized supply chain using bi-level programming approach

Pricing is one of the major aspects of decision making in supply chain. In the previous works mostly a centralized environment is considered indicating the retailers cannot independently apply their decisions on the pricing strategy. Although in a two-echelon decentralized environment it may be possible that supply chain contributors have encountered with different market power situations which...

full text

My Resources

Save resource for easier access later

Save to my library Already added to my library

{@ msg_add @}


Journal title

volume 14  issue 1

pages  -

publication date 2018-03-01

By following a journal you will be notified via email when a new issue of this journal is published.

Hosted on Doprax cloud platform doprax.com

copyright © 2015-2023