Supply chain management of perishable products has to use some mechanisms to control the product waste amount. Dynamic pricing and cooperation of the chain members are some mechanisms which mitigate the waste amount. This paper studies the dynamic pricing problem of a perishable product supply chain with one manufacturer, one retailer, and two periods: production and selling periods. The problem considers price markdown policy to manage the total quality-dependent stochastic demand: dividing the selling period into two different terms and offering two selling prices. This paper analyzes the problem heuristically via Stackelberg and cooperation games. Obtained results demonstrate that the cooperation scenario allocates the maximum profits to the chain members and customers due to the least selling prices. Also, in the Stackelberg cases, both members gain higher profits under the manufacturer-led Stackelberg game; however, the retailer-led Stackelberg game represents lower selling prices and the greatest price markdowns which is profitable to customers.
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DOI : 10.1051/ro/2022111
Keywords: Stochastic supply chain, pricing, stochastic demand, dynamic programming, game theory, heuristic method
@article{RO_2022__56_4_2425_0,
author = {Zarouri, Farnia and Khamseh, Alireza Arshadi and Pasandideh, Seyed Hamid Reza},
title = {Dynamic pricing in a two-echelon stochastic supply chain for perishable products},
journal = {RAIRO. Operations Research},
pages = {2425--2442},
year = {2022},
publisher = {EDP-Sciences},
volume = {56},
number = {4},
doi = {10.1051/ro/2022111},
mrnumber = {4458846},
language = {en},
url = {https://www.numdam.org/articles/10.1051/ro/2022111/}
}
TY - JOUR AU - Zarouri, Farnia AU - Khamseh, Alireza Arshadi AU - Pasandideh, Seyed Hamid Reza TI - Dynamic pricing in a two-echelon stochastic supply chain for perishable products JO - RAIRO. Operations Research PY - 2022 SP - 2425 EP - 2442 VL - 56 IS - 4 PB - EDP-Sciences UR - https://www.numdam.org/articles/10.1051/ro/2022111/ DO - 10.1051/ro/2022111 LA - en ID - RO_2022__56_4_2425_0 ER -
%0 Journal Article %A Zarouri, Farnia %A Khamseh, Alireza Arshadi %A Pasandideh, Seyed Hamid Reza %T Dynamic pricing in a two-echelon stochastic supply chain for perishable products %J RAIRO. Operations Research %D 2022 %P 2425-2442 %V 56 %N 4 %I EDP-Sciences %U https://www.numdam.org/articles/10.1051/ro/2022111/ %R 10.1051/ro/2022111 %G en %F RO_2022__56_4_2425_0
Zarouri, Farnia; Khamseh, Alireza Arshadi; Pasandideh, Seyed Hamid Reza. Dynamic pricing in a two-echelon stochastic supply chain for perishable products. RAIRO. Operations Research, Tome 56 (2022) no. 4, pp. 2425-2442. doi: 10.1051/ro/2022111
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