Decentralized supply chains under random price-dependent demand: noncooperative equilibria vs. coordination with cost-sharing contracts
type: Item
instance of: scholarly article
title: Decentralized supply chains under random price-dependent demand: noncooperative equilibria vs. coordination with cost-sharing contracts
zbMATH Open document ID: 1459.90009
DOI: 10.1155/2020/1920797
author: Yanpeng Sun
author: Cheng Ma
author: Qi Sun
published in: Mathematical Problems in Engineering
publication date: 2020-07-13T00:00:00Z
review text: Summary: It is common for a supplier to sell products to multiple retailers. In this paper, we investigate the equilibrium behavior of a decentralized supply chain with multiple retailers facing a random price-dependent demand in the additive form. Here, we consider two kinds of demand functions: the distribution of the demand depends only on the retailer's own retail price (noncompeting retailers) and not only on his own retail price but also on that of the other retailers (competing retailers). We present appropriate wholesale price, buy-back, and lost-sales cost-sharing contracts to coordinate the total supply chain, so that when all the retailers adopt their equilibrium response, the supply chain system coordination is also achieved. Furthermore, the coalition formation among retailers is also analyzed. We find that with buy-back and lost-sales cost-sharing contracts and linear price-dependent demand function, retailers always prefer being in the grand coalition to forming any other coalition.
Mathematics Subject Classification ID: 90B05
Mathematics Subject Classification ID: 90B06
Mathematics Subject Classification ID: 91B42
zbMATH DE Number: 7219916
MaRDI profile type: Publication
full work available at URL: https://doi.org/10.1155/2020/1920797
OpenAlex ID: W3037224355
cites work: Q3410593
cites work: Joint Pricing-Production Decisions in Supply Chains of Complementary Products with Uncertain Demand
cites work: Note. The role of returns policies in pricing and inventory decisions for catalogue goods
cites work: How a dominant retailer might design a purchase contract for a newsvendor-type product with price-sensitive demand
cites work: Coordination Mechanisms for a Distribution System with One Supplier and Multiple Retailers
cites work: Coordinating supply chain inventories through common replenishment epochs
cites work: Decentralized Supply Chains with Competing Retailers Under Demand Uncertainty
cites work: Price Versus Production Postponement: Capacity and Competition
cites work: Competitive and Cooperative Inventory Policies in a Two-Stage Supply Chain
cites work: Competition and Cooperation in Decentralized Push and Pull Assembly Systems
cites work: Some two-echelon supply-chain games: Improving from deterministic-symmetric-information to stochastic-asymmetric-information models
cites work: Inventory Policies in a Decentralized Assembly System
cites work: Game Theoretic Applications in Supply Chain Management: A Review
description: scientific article; zbMATH DE number 7219916