International Journal of Production Research volume 57, issue 4, P1250-1264 2018 DOI: 10.1080/00207543.2018.1504244 View full text
Mervegül Kırcı, Işık Biçer, Ralf W. Seifert

Abstract: We consider a two-echelon supply chain with an upstream manufacturer and a downstream retailer for a single perishable product. The manufacturer processes raw materials into finished products, which are purchased by the retailer in each replenishment cycle. The raw materials of the manufacturer are highly perishable (i.e., perishing within hours or days), and the finished goods at the retailer face demand uncertainty and obsolescence. We model the manufacturer-retailer relationship as a Stackelberg game where …

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