This paper aims to develop a new bi-level game model for joint pricing and inventory decisions in a competitive supply chain consisting of a dominant manufacturer, who produces single perishable product from deteriorating raw materials, and two follower retailers who face nonlinear price-dependent demand and operate under Cournot assumptions. Three levels of warehousing including raw material warehouse, final product warehouse, and retail warehouses with exponential deterioration rates are considered to explore the joint impact of deterioration rate and price elasticity on the equilibrium inventory decisions. A Stackelberg–Nash–Cournot model is developed to seek the equilibrium prices, quantities, and replenishment cycles and is solved through an exact methodology. A numerical example is presented to validate the proposed model and comprehensive sensitivity analyses are carried out to measure the impact of the model’s key parameters including the deterioration rate in the producer’s and the retailers’ warehouses, the retail and competitor price elasticity, and the market scale on the equilibrium.
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DOI : 10.1051/ro/2021106
Keywords: Supply chain coordination, perishable products, inventory decisions, pricing, bi-level programming, Stackelberg–Nash–Cournot equilibrium
@article{RO_2021__55_4_2395_0,
author = {Rajabi, Naser and Mozafari, Marzieh and Naimi-Sadigh, Ali},
title = {Bi-level pricing and inventory strategies for perishable products in a competitive supply chain},
journal = {RAIRO. Operations Research},
pages = {2395--2412},
year = {2021},
publisher = {EDP-Sciences},
volume = {55},
number = {4},
doi = {10.1051/ro/2021106},
mrnumber = {4299599},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2021106/}
}
TY - JOUR AU - Rajabi, Naser AU - Mozafari, Marzieh AU - Naimi-Sadigh, Ali TI - Bi-level pricing and inventory strategies for perishable products in a competitive supply chain JO - RAIRO. Operations Research PY - 2021 SP - 2395 EP - 2412 VL - 55 IS - 4 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2021106/ DO - 10.1051/ro/2021106 LA - en ID - RO_2021__55_4_2395_0 ER -
%0 Journal Article %A Rajabi, Naser %A Mozafari, Marzieh %A Naimi-Sadigh, Ali %T Bi-level pricing and inventory strategies for perishable products in a competitive supply chain %J RAIRO. Operations Research %D 2021 %P 2395-2412 %V 55 %N 4 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2021106/ %R 10.1051/ro/2021106 %G en %F RO_2021__55_4_2395_0
Rajabi, Naser; Mozafari, Marzieh; Naimi-Sadigh, Ali. Bi-level pricing and inventory strategies for perishable products in a competitive supply chain. RAIRO. Operations Research, Tome 55 (2021) no. 4, pp. 2395-2412. doi: 10.1051/ro/2021106
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