Proceedings of the 2013 the International Conference on Education Technology and Information System (ICETIS 2013)

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Dynamic Game-theoretic Model for Coordinating Pricing and Inventory Decisions in a Supply Chain with Retailer Competition

Authors
Yun Huang, George Q. Huang, Kuifun Ip Gang
Corresponding Author
Yun Huang
Available Online June 2013.
DOI
10.2991/icetis-13.2013.33How to use a DOI?
Keywords
Supply Chain; Dynamic Non-cooperative Game; Nash Equilibrium; Pricing; Inventory
Abstract

In this paper, we discuss how a manufacturer interacts with his multiple competing retailers to optimize their individual net profits through coordinating pricing and inventory decisions in a two-echelon supply chain. The manufacturer purchases raw materials outside to produce substitutable products to different retailers. The manufacturer determines his optimal wholesale prices for different retailers, setup time interval for the products and replenishment cycle for raw materials to maximize his profit. For each retailer, he considers optimal retail prices and replenishment policies to maximize his profit. The problem is modeled as a dynamic non-cooperative game in which all the competing retailers formulate a subgame and as a sector play the whole game with the manufacturer. Analytical method and solution algorithm are developed to determine the Nash equilibrium of this game. A numerical study is conducted to examine the influence of market and production related parameters on decisions and profits of the supply chain and its constituent members.

Copyright
© 2013, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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Volume Title
Proceedings of the 2013 the International Conference on Education Technology and Information System (ICETIS 2013)
Series
Advances in Intelligent Systems Research
Publication Date
June 2013
ISBN
10.2991/icetis-13.2013.33
ISSN
1951-6851
DOI
10.2991/icetis-13.2013.33How to use a DOI?
Copyright
© 2013, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

risenwbib
TY  - CONF
AU  - Yun Huang
AU  - George Q. Huang
AU  - Kuifun Ip Gang
PY  - 2013/06
DA  - 2013/06
TI  - Dynamic Game-theoretic Model for Coordinating Pricing and Inventory Decisions in a Supply Chain with Retailer Competition
BT  - Proceedings of the 2013 the International Conference on Education Technology and Information System (ICETIS 2013)
PB  - Atlantis Press
SP  - 147
EP  - 151
SN  - 1951-6851
UR  - https://doi.org/10.2991/icetis-13.2013.33
DO  - 10.2991/icetis-13.2013.33
ID  - Huang2013/06
ER  -