Pricing strategy and order quantity allocation with price-sensitive demand in three-echelon supply chain

Hanh, Nguyen Thi My; Chen, Jen Ming; Hợp, Nguyễn Văn

doi:10.1016/j.eswa.2022.117873

Cited by 17 publications

(7 citation statements)

References 49 publications

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“…Recently, many research work are designed for production lot-size problem and they focus on a two-stage and three-stage supply chain. Hanh et al [14] investigated a supply chain coordination framework to minimize the double marginalization effect in the case of price-sensitive demand. They investigated the impact of pricing strategy and ordering/production policy on the performance of a three-layer SCM by using the Salop spatial model.…”

Section: Supply Chain Managementmentioning

confidence: 99%

“…Thus, the purpose and aim of these two models are different. -Hanh et al [14] investigated a three-echelon supply chain non-coordination model with a price-sensitive linear demand to choose the most efficient players through game theory. In contrast, the present paper proposes the best policies for a three-echelon supply chain coordination model with price and advertisement-sensitive non-linear demand.…”

Section: Comparison With Existing Literaturementioning

confidence: 99%

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Payment policy for a three-echelon supply chain management under advertisement-driven demand

Mondal¹,

Pareek²,

Sarkar³

2024

RAIRO-Oper. Res.

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Payment and selling are two important policies for a supply chain management. All participating supply chain players can earn profit based on the successful implementation of these two policies. The payment policy provides buyers with some extra time to pay for the product. This research introduces a single-supplier, a single-manufacturer, and multi-retailer-based three-echelon supply chain management under advertising and payment policies. Product delivery among supply chain players is made with the help of a transportation policy. The transportation policy is environment-friendly and helps retailers with their cost management. It is demonstrated that advertising positively influences sales through an advertisement driven market demand for the product. The model aims to reduce supply chain cost and maximize profit by considering a single-setup multiple-delivery policy, variable transportation cost, variable carbon emissions costs, and trade-credit policy. The objective function is optimized for cases: Case 1 and Case 2, based on the payment period. A classical optimization method is employed to obtain the solution of the model. A numerical example, sensitivity analysis, and graphical representations are given to illustrate the model. Results show that Case 2, where cycle time is greater than the payment period, is 45.36% more profitable than Case 1.

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Section: Supply Chain Managementmentioning

confidence: 99%

Section: Comparison With Existing Literaturementioning

confidence: 99%

Payment policy for a three-echelon supply chain management under advertisement-driven demand

Mondal¹,

Pareek²,

Sarkar³

2024

RAIRO-Oper. Res.

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“…Expected value models are developed to determine the optimal pricing and retail service strategies in a supply chain with one manufacturer and two retailers. Hanh et al [46] studied price and production decisions in a three-stage supply chain including multiple suppliers, multiple manufacturers and multiple retailers where the suppliers are the leaders and the retailers are the followers, and the demand is price sensitive. Through the Salop spatial model and Nash game approach to minimize the double marginalization effect.…”

Section: Research On Supply Chain Models and Decisionsmentioning

confidence: 99%

Research on Coordination in a Dual-Channel Green Supply Chain under Live Streaming Mode

Chen¹,

Zhou²,

Liu

et al. 2023

Sustainability

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In this paper, we study the coordination issue in a dual-channel green supply chain with one manufacturer and one retailer. The demand in the traditional channel is assumed to be dependent on retail price, sales effort and green degree. Due to the characteristic of live broadcast selling, the demand in the direct channel is assumed to be dependent on price and discount. On the basis of analyzing price, sales effort and green degree strategies in the supply chain under the centralized model, two decentralized models and two coordination models are presented. Moreover, we prove the feasibility of sharing the R&D costs of the green degree and sales effort costs of the advertisement (CS-GS) contract through bargaining problems achieving a win-win situation, but the revenue sharing and wholesale price (RSC) contract commonly used cannot efficiently coordinate the supply chain. Finally, numerical analysis is given to show the impacts of coordination contracts on the supply chain’s performance as well as the impacts of parameters on profits and decisions in the four models. It reveals that the CS-GS contract can not only help to improve the green degree and the price of the product, but also improve the profitability of all supply chain members.

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“…Constraint (9) ensures that an interval per selected supplier is selected. Constraint (10) establishes the maximum number of orders per cycle that can be assigned. Constraint (11) ensures that each selected supplier has a total assigned order less than or equal to the total orders per cycle.…”

Section: The Previous Modelmentioning

confidence: 99%

“…While selling items at a high price may seem logical to make a significant profit, the retailers may not be able to sell the products if the price is too high. There has been research on the mathematical relationship between demand and selling price in the literature [7][8][9][10].…”

Section: Introductionmentioning

confidence: 99%

A Mathematical Model for an Inventory Management and Order Quantity Allocation Problem with Nonlinear Quantity Discounts and Nonlinear Price-Dependent Demand

Alejo-Reyes

Mendoza

Cuevas

et al. 2023

Axioms

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This article focuses on solving the order quantity allocation problem for retailers. It considers factors such as quality constraints, nonlinear quantity discounts, and price-dependent demand. By formulating it as a nonlinear maximization problem, the article aims to find the best combination of suppliers and order quantity out of infinite solutions to maximize the retailer’s profit. The main contribution of this research is a new mathematical model that can solve the problem of quality constraint and demand in a single step. This problem is complex due to the number of equations, their nonlinear nature, and the various trade-offs given by the market. Additionally, this research considers demand as output and includes price-dependent demand, which is more realistic for retailers. The proposed model was tested using an example from the recent literature and showed better results than the previously published best solution regarding profit maximization.

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Pricing strategy and order quantity allocation with price-sensitive demand in three-echelon supply chain

Cited by 17 publications

References 49 publications

Payment policy for a three-echelon supply chain management under advertisement-driven demand

Payment policy for a three-echelon supply chain management under advertisement-driven demand

Research on Coordination in a Dual-Channel Green Supply Chain under Live Streaming Mode

A Mathematical Model for an Inventory Management and Order Quantity Allocation Problem with Nonlinear Quantity Discounts and Nonlinear Price-Dependent Demand

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