EconPapers    
Economics at your fingertips  
 

Conditions of reverse bullwhip effect in pricing under joint decision of replenishment and pricing

Ertunga C. Özelkan, Churlzu Lim and Ziaul Haq Adnan

International Journal of Production Economics, 2018, vol. 200, issue C, 207-223

Abstract: A “reverse bullwhip effect in pricing (RBP)” occurs when an amplification of price variability takes place moving from the upstream suppliers to the downstream customers in a supply chain. In this study, we investigate RBP conditions for supply chains where joint replenishment and pricing decisions are made. Commencing with a single-stage supply chain in which a retailer faces a random and price-sensitive demand, we extend the results to a multi-stage supply chain using a leader-follower game theoretical framework. We discuss RBP conditions for supply chains where newsvendor and continuous review inventory policies are employed, and present numerical examples for commonly used demand functions.

Keywords: Pricing; Inventory control; Newsvendor; Continuous review; Bullwhip effect; Supply chain management; Game theory (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0925527318301439
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:proeco:v:200:y:2018:i:c:p:207-223

Access Statistics for this article

International Journal of Production Economics is currently edited by R. W. Grubbström

More articles in International Journal of Production Economics from Elsevier
Bibliographic data for series maintained by Dana Niculescu ().

 
Page updated 2018-06-23
Handle: RePEc:eee:proeco:v:200:y:2018:i:c:p:207-223