Two-echelon competitive integrated supply chain model with price and credit period dependent demand

Brojeswar Pal, Shib Sankar Sana and Kripasindhu Chaudhuri

International Journal of Systems Science, 2016, vol. 47, issue 5, 995-1007

Abstract: This study considers a two-echelon competitive supply chain consisting of two rivaling retailers and one common supplier with trade credit policy. The retailers hope that they can enhance their market demand by offering a credit period to the customers and the supplier also offers a credit period to the retailers. We assume that the market demand of the products of one retailer depends not only on their own market price and offering a credit period to the customers, but also on the market price and offering a credit period of the other retailer. The supplier supplies the product with a common wholesale price and offers the same credit period to the retailers. We study the model under a centralised (integrated) case and a decentralised (Vertical Nash) case and compare them numerically. Finally, we investigate the model by the collected numerical data.

Date: 2016
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Citations: View citations in EconPapers (7)

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DOI: 10.1080/00207721.2014.911383

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