Cooperative Pricing Decision Model in Supply Chain

Abstract:

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This paper considers a retailer who wishes to procure a kind of product to meet customer’s demand and shows that the supplier and the retailer’s cooperetive pricing decision . We gives the prices of Pareto optimal equlibrium and compares the prices with that of cooperative supply chain and find that noncooperative system profit is less than cooperative system profit. Furthermore, we shows that on some assumption, Pareto optimal price policy is equivalent to jointly decision policy, i.e., Pareto optimal price policy can reach the whole system maximum profit, and the numerical example indicates that with the retailer operating cost increasing, the total profit of supply chain is decreasing.

Info:

Periodical:

Advanced Materials Research (Volumes 228-229)

Edited by:

Quanjie Gao

Pages:

789-793

DOI:

10.4028/www.scientific.net/AMR.228-229.789

Citation:

X. W. Wang and X. X. Zang, "Cooperative Pricing Decision Model in Supply Chain", Advanced Materials Research, Vols. 228-229, pp. 789-793, 2011

Online since:

April 2011

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Price:

$35.00

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