Pricing in spatial classification system in non-symmetric market demand based on the calculations of double interval grey numbers

Maryam Amini, Armin Mahmoodi, Leila Hashemi, Reza Kiani Aslani, Arash Taheri and Mohammad Kiani

Modern Supply Chain Research and Applications, 2024, vol. 7, issue 1, 30-54

Abstract: Purpose - The contemporary landscape of supply chains necessitates a comprehensive integration of multiple components encompassing production, distribution and customer engagement. The pursuit of supply chain harmony underscores the significance of pricing strategies within the framework of dual-channel distribution, particularly when confronted with the dynamics of asymmetric demand performance. Design/methodology/approach - This paper delves into a nuanced decision-making challenge anchored in a dual-channel distribution context featuring a retailer and two distinct products. Notably, the retailer’s decision-making process employs the computational framework of dual grey numbers, a robust tool for handling uncertainty. Findings - This study revolves around applying game theory to manufacturers. Each manufacturer presents its aggregated price proposition to the retailer. Subsequently, the retailer identifies the optimal pricing configuration among the manufacturers' aggregate prices while adhering to constraints such as spatial classification and inventory costs. This article’s contribution extends to delineating the retailer’s capacity to discern the influence of product market potential and the aggregate product cost on the overall demand. Originality/value - The model’s innovation lies in its harmonious fusion of spatial classification, pricing strategies and inventory control. Notably, this novel integration provides a platform for unraveling the intricate interplay between non-symmetric market potential, production costs and cross-sensitivity. The investigation is underscored by the utilization of the double interval grey numbers, a powerful computational approach that accommodates the inherent uncertainty pervasive in the domain. This study fills a gap in the existing literature by offering an integrated framework unifying spatial allocation, pricing decisions and inventory optimization.

Keywords: Spatial classification; Pricing; Inventory control; Double interval grey numbers; Non-symmetric demand (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (text/html)
https://www.emerald.com/insight/content/doi/10.110 ... d&utm_campaign=repec (application/pdf)

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:eme:mscrap:mscra-09-2023-0040

DOI: 10.1108/MSCRA-09-2023-0040

Access Statistics for this article

Modern Supply Chain Research and Applications is currently edited by YU Yugang

More articles in Modern Supply Chain Research and Applications from Emerald Group Publishing Limited
Bibliographic data for series maintained by Emerald Support ().