Pricing decisions in dual-channel supply chain with one manufacturer and multiple retailers: A game-theoretic approach
RAIRO - Operations Research - Recherche Opérationnelle, Tome 51 (2017) no. 4, pp. 1269-1287.

In this study, to price a product that can be simultaneously sold in the e-tail and retail channels, a dual-channel supply chain is considered containing one manufacturer and multiple retailers. In this setting, the game-theoretic approach is applied to obtain the equilibrium prices To our best knowledge, the game-theoretic frameworks proposed to price the products in the dual-channel supply chain have considered a single retailer in the retail channel, while multiple retailers can exist in the retail channel in practice. It is assumed that the manufacturer and retailers have the same decision powers. First, the Nash game model is established to set the prices in decentralized model A centralized model is presented to maximize the profit of the whole system. Then, a coordination mechanism based on the linear quantity discount schedule is applied to fully coordinate the supply chain. Finally, the Nash bargaining model is used to share the extra profit given by the whole system cooperation among the members

DOI : 10.1051/ro/2017003
Classification : 91A80, 91A40
Mots-clés : Supply chain management, dual-channel, pricing, economic, game theory
Jafari, Hamed 1 ; Hejazi, Seyed Reza 1 ; Rasti−Barzoki, Morteza 1

1 Department of Industrial and Systems Engineering, Isfahan University of Technology, Isfahan 84156-83111, Iran.
@article{RO_2017__51_4_1269_0,
     author = {Jafari, Hamed and Hejazi, Seyed Reza and Rasti\ensuremath{-}Barzoki, Morteza},
     title = {Pricing decisions in dual-channel supply chain with one manufacturer and multiple retailers: {A} game-theoretic approach},
     journal = {RAIRO - Operations Research - Recherche Op\'erationnelle},
     pages = {1269--1287},
     publisher = {EDP-Sciences},
     volume = {51},
     number = {4},
     year = {2017},
     doi = {10.1051/ro/2017003},
     mrnumber = {3783944},
     zbl = {1408.91079},
     language = {en},
     url = {http://archive.numdam.org/articles/10.1051/ro/2017003/}
}
TY  - JOUR
AU  - Jafari, Hamed
AU  - Hejazi, Seyed Reza
AU  - Rasti−Barzoki, Morteza
TI  - Pricing decisions in dual-channel supply chain with one manufacturer and multiple retailers: A game-theoretic approach
JO  - RAIRO - Operations Research - Recherche Opérationnelle
PY  - 2017
SP  - 1269
EP  - 1287
VL  - 51
IS  - 4
PB  - EDP-Sciences
UR  - http://archive.numdam.org/articles/10.1051/ro/2017003/
DO  - 10.1051/ro/2017003
LA  - en
ID  - RO_2017__51_4_1269_0
ER  - 
%0 Journal Article
%A Jafari, Hamed
%A Hejazi, Seyed Reza
%A Rasti−Barzoki, Morteza
%T Pricing decisions in dual-channel supply chain with one manufacturer and multiple retailers: A game-theoretic approach
%J RAIRO - Operations Research - Recherche Opérationnelle
%D 2017
%P 1269-1287
%V 51
%N 4
%I EDP-Sciences
%U http://archive.numdam.org/articles/10.1051/ro/2017003/
%R 10.1051/ro/2017003
%G en
%F RO_2017__51_4_1269_0
Jafari, Hamed; Hejazi, Seyed Reza; Rasti−Barzoki, Morteza. Pricing decisions in dual-channel supply chain with one manufacturer and multiple retailers: A game-theoretic approach. RAIRO - Operations Research - Recherche Opérationnelle, Tome 51 (2017) no. 4, pp. 1269-1287. doi : 10.1051/ro/2017003. http://archive.numdam.org/articles/10.1051/ro/2017003/

K.Y. Chen, M. Kaya and O. Ozer, Dual sales channel management with service competition. Manuf. Serv. Oper. Manag. 10 (2008) 654–675. | DOI

Chen, Kebing, Lei Yang, Yanxia Liu, An analysis of supply chain decisions with asymmetrical retailers: effects of disruptions and static service cost on coordination mechanism. RAIRO: OR 46 (2012) 159–187. | DOI | Numdam | Zbl

E. Cao, Y. Ma, C. Wan and M. Lai, Contracting with asymmetric cost information in a dual-channel supply chain. Oper. Res. Lett. 41 (2014) 410–414. | DOI | MR | Zbl

G.P. Cachon and P.T. Harker, Competition and outsourcing with scale economies. Manag. Sci. 48 (2002) 1314–1333. | DOI | Zbl

G. Cai, Z.G. Zhang and M. Zhang, Game theoretical perspectives on dual-channel supply chain competition with price discounts and pricing schemes. Int. J. Prod. Econ. 117 (2009) 80–96. | DOI

Y.C. Chen, S.C. Fang and U.P. Wen, Pricing policies for substitutable products in a supply chain with Internet and traditional channels. Eur. J. Oper. Res. 224 (2013) 542–551. | DOI | MR | Zbl

J. Chen, H. Zhang and Y. Sun, Implementing coordination contracts in a manufacturer Stackelberg dual-channel supply chain. Omega 40 (2012) 571–583. | DOI

B. Dan, G. Xu and C. Liu, Pricing policies in a dual-channel supply chain with retail services. Inter. J. Prod. Econ. 139 (2012) 312–320. | DOI

Y. Dai, X. Chao, S.C. Fang, H.L.W. Nuttle, Pricing in revenue management for multiple firms competing for customers. Inter. J. Prod. Econ. 98 (2005) 1–16. | DOI

A. Dumrongsiri, M. Fan, A. Jain and K. Moinzadeh, A supply chain model with direct and retail channels. Eur. J. Oper. Res. 187 (2008) 691–718. | DOI | MR | Zbl

N.C.P. Edirisinghe, B. Bichescu and X. Shi, Equilibrium analysis of supply chain structures under power imbalance. Eur. J. Oper. Res. 214 (2011) 568–578. | DOI | MR | Zbl

L. Fan, T.L. Friesz, T. Yao and X. Chen, Strategic Pricing and Production Planning Using a Stackelberg Differential Game With Unknown Demand Parameters. IEEE Trans. Eng. Manag. 60 (2013) 581–591. | DOI

S. Jin, C. Zheng, K. Yu and X. Lai, Tolerance design optimization on cost–quality trade-off using the Shapley value method. J. Manuf. Syst. 22 (2010) 142–150. | DOI

Harrington Jrjoseph E., A re-evaluation of perfect competition as the solution to the Bertrand price game. Math. Soc. Sci. 17 (1989) 315–328. | DOI | MR | Zbl

G. Hua, S. Wang and T.C.E. Cheng, Price and lead time decisions in dual-channel supply chains. Eur. J. Oper. Res. 205 (2010) 113–126. | DOI | Zbl

S. Huang, C. Yang and H. Liu, Pricing and production decisions in a dual-channel supply chain when production costs are disrupted. Econ. Model. 30 (2013) 521–538. | DOI

S. Huang, C. Yang and X. Zhang, Pricing and production decisions in dual-channel supply chains with demand disruptions. Comput. Ind. Eng. 62 (2012) 70–83. | DOI

C.A. Ingene and M.E. Parry, Channel coordination when retailers compete. Marketing Sci. 14 (1195) 360–377.

W.C. Lee, J.W. Wu and C.L. Lei, Computational algorithmic procedure for optimal inventory policy involving ordering cost reduction and back-order discounts when lead time demand is controllable. Appl. Math. Comput. 189 (2007) 186–200. | MR | Zbl

B. Liu, R. Zhang and M. Xiao, Joint decision on production and pricing for online dual channel supply chain system. Appl. Math. Model. 34 (2010) 4208–4218. | DOI | MR | Zbl

S.K. Mukhopadhyay, X. Zhu and X. Yue, Optimal contract design for mixed channels under information asymmetry. Prod. Oper. Manag. 17 (2008) 641–650. | DOI

M.A.M. Primo and S.D. Amundson, An exploratory study of the effects of supplier relationships on new product development outcomes. J. Oper. Manag. 20 (2002) 33–52. | DOI

S.D. Pathak, D.M. Dilts and G. Biswas, On the Evolutionary Dynamics of Supply Network Topologies. IEEE Trans. Eng. Manag. 54 (2007) 662–672 | DOI

Brusset, Xavier. Estimating the supply chain efficiency loss when the seller has to estimate the buyer’s willingness to pay. RAIRO: OR 48 (2014) 477–496. | DOI | Numdam | MR | Zbl

H. Jafari, S.R. Hejazi and M. Rasti−Barzoki, Sustainable development by waste recycling under a three-echelon supply chain: A game-theoretic approach. J. Cleaner Prod. 142 (2017) 2252–2261. | DOI

S. Jorgensen and G. Zaccour, Equilibrium pricing and advertising strategies in a marketing channel. J. Optim. Theory Appl. 102 (1999) 111–125. | DOI | MR | Zbl

H. Jafari, S.R. Hejazi and M. Rasti−Barzoki, Pricing Decisions in Dual-Channel Supply Chain Including Monopolistic Manufacturer and Duopolistic Retailers: A Game-Theoretic Approach. J. Ind. Competition Trade 16 (2016) 323–343. | DOI

B. Kim and C. Park, Coordinating decisions by supply chain partners in a vendor-managed inventory relationship. J. Manufacturing Syst. 29 (2010) 71–80. | DOI

J.K. Ryan, S. Daewon and Z. Xuying, Coordinating a Supply Chain With a Manufacturer-Owned Online Channel: A Dual Channel Model Under Price Competition. IEEE Trans. Eng. Manag. 60 (2013) 247–259. | DOI

R. Yan, Managing channel coordination in a multi-channel manufacturer-retailer supply chain. Ind. Marketing Manag. 40 (2011) 636–642. | DOI

J. Nash, The bargaining problem. Econometrica: J. Econ. Soc. 18 (1950) 155–162. | DOI | MR | Zbl

G. Ferrer and M.E. Ketzenberg, Value of information in remanufacturing complex products. IIE Trans. 36 (2004) 265–277. | DOI

S.L. Yang and Y.W. Zhou, Two-echelon supply chain models: Considering duopolistic retailers’ different competitive behaviors. International J. Prod. Econ. 103 (2006) 104–116. | DOI

S.D. Wang, Y.W. Zhou, J. Min and Y.G. Zhong, Coordination of cooperative advertising models in a one-manufacturer two-retailer supply chain system. Comput. Ind. Eng. 61 (2011) 1053–1071. | DOI

R.C. Savaskan, S. Bhattacharya and L.N. Vanwassenhove, Closed-loop supply chain models with product remanufacturing. Manag. Sci. 50 (2004) 239–252. | DOI | Zbl

R.C. Savaskan and L.N. Vanwassenhove, Reverse channel design: the case of competing retailers. Manag. Sci. 52 (2006) 1–14. | DOI | Zbl

M.M. Seyed Esfahani, M. Biazaran and M. Gharakhani, A game theoretic approach to coordinate pricing and vertical co-op advertising in manufacturer-retailer supply chains. Eur. J. Oper. Res. 211 (2011) 263–273. | DOI | MR | Zbl

H.W. Kuhn and A.W. Tucker, Nonlinear programming. University of California Press (1951). | MR | Zbl

K. Pan, K.K. Lai, S.C.H. Leung and D. Xiao, Revenue-sharing versus wholesale price mechanisms under different channel power structures. Eur. J. Oper. Res. 203 (2010) 532–538. | DOI | Zbl

J. Wei, J. Zhao and Y. Li, Pricing decisions for complementary products with firms’ different market powers. Eur. J. Oper. Res. 224 (2013) 507–519. | DOI | MR | Zbl

J. Xie and A. Neyret, Co-op advertising and pricing models in manufacturer-retailer supply chains. Comput. Ind. Eng. 56 (2009) 1375–1385. | DOI

T. Xiao, T. Choi and T.C.E. Cheng, Optimal Variety and Pricing Decisions of a Supply Chain With Economies of Scope. IEEE Trans. Eng. Manag. 62 (2015) 411–420 | DOI

D.G. Yao and J.J. Liu, Competitive pricing of mixed retail and e-tail distribution channels. Omega 33 (2005) 235–247. | DOI

R. Yan and Z. Pei, Retail services and firm profit in a dual-channel market. J. Retailing Consumer Serv. 16 (2009) 306–314. | DOI

J. Yue, J.K. Ryan and W. Yund, Two Stage Procurement Processes With Competitive Suppliers and Uncertain Supplier Quality. IEEE Trans. Eng. Manag. 61 (2013) 147–158.

M.S. Zschocke, B. Mantin and E. Jewkes, Competitive Market Selection With Timing and Capacity Decisions. IEEE Trans. Eng. Manag. 60 (2013) 88–98. | DOI

Cité par Sources :