Price Competition Model in Centralized and Decentralized Supply Chains with Demand Disruption

Wenlong Chai (), Huijun Sun (), Wei Wang () and Jianjun Wu ()
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Wenlong Chai: Beijing Jiaotong University
Huijun Sun: Beijing Jiaotong University
Wei Wang: Beijing Jiaotong University
Jianjun Wu: Beijing Jiaotong University

A chapter in LISS 2012, 2013, pp 1025-1031 from Springer

Abstract: Abstract The paper studies the price competition of a supply chain with one supplier and tow competing retailers under occasional demand disruption. The demand disruption for two retailers occurs with different probability. The optimal prices of the supplier and two retailers in centralized or decentralized pattern are obtained under demand disruption. We find that the profits of chain partners are decreasing with the occurrence probability of the demand disruption.

Keywords: Coordination; Occurred probability; Supply chain profit (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-642-32054-5_144

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DOI: 10.1007/978-3-642-32054-5_144

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