Cooperative Pricing of Apparel Supply Chain Based on API

Abstract:

The purpose of this paper is to construct a multi-objective optimization model for cooperative pricing in the management of apparel supply chain. Firstly, by using Apparel Popularity Index (API) model, a kind of pricing model for supply chain has been built. Then, by introducing cooperation and other constraint conditions, a kind of cooperative pricing model was constructed. This model is a kind of Stackelberg game. The manufacturer and the retailer obtained their excess profits through the game. Lastly, this paper gave a numerical example which demonstrated that the excess profit of the cooperative supply chain was constant, and when the constraint conditions changed, the excess profit space would change at the meantime. This research result can help partners on apparel supply chain to practice Quick Response strategy.

• Periodical: Applied Mechanics and Materials (Volumes 58-60)
• Pages: 28-35
• DOI: https://doi.org/10.4028/www.scientific.net/AMM.58-60.28
• Online since: June 2011
• Authors: Ge Fu Zhang, Dong Hui Wang
• Keywords: Apparel Supply-Chain, Collaborative Pricing, Game, Multi-Objective Optimization (MOP), Quick Response

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