In this paper, we establish a cold chain dynamic game model including a milk manufacturer and two downstream oligopoly supermarkets under the wholesale price contract in the real world. The manufacturer is responsible for the production and cold transportation, and the two retailers sell the product. The Nash equilibrium points and the complexity of the system are discussed. The influence of the decision parameters and the stability of the system are studied by using complexity theory. We reveal the stable regions for the dynamic system. In addition, revenue sharing contract and profit sharing contract are two valuable contracts. In order to see how the two contracts would impact on the system’s equilibrium solution and the profits, we establish and analyze two new dynamic models for the cold chain. By the comparison of the analyses under three contracts, we find that the manufacturer’s effort of cold transportation will change under different contracts, and the profit distribution of the whole cold chain will be affected. Chaos control is also studied by the method of delay feedback control, in order to provide some management advice.
This paper studies the advertising decision regarding a supply chain with manufacturer encroachment. It is assumed that the manufacturer and the retailer have different quantity decision power so as to explore how the first-mover advantage affect the advertising decision and the manufacturer encroachment. It is known that the manufacturer encroachment usually makes the retailer worse off. Our results show that (1) the retailer can benefit from encroachment when the manufacturer’s direct selling cost is high and the manufacturer does not have first-mover advantage of quantity decision; (2) the manufacturer can benefit from encroachment if his advertising effectiveness is high; (3) the encroachment may lead to a lose-lose result if the manufacturer has the first-mover advantage and his advertising effectiveness is not relative high; (4) the manufacturer may be worse off if his direct selling cost is intermediate no matter who has the first-mover advantage of quantity decision. Thus, the manufacturer should be more careful about the relationship between him and the retailer. Additionally, we consider two ways of advertising cooperation. Results shows that which type of cooperation is better depends on the relative advertising effectiveness. Furthermore, we propose an incentive cooperative advertising scheme which makes all players get higher profits.
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