On the Performance of Push and Pull Models with the Price-Sensitive Demand
Authors
Xiaohong Zhang1, Jihong Ou
1Department of Management Science, School of Politics and Public Administration, Soochow University, Suzhou 215006 P.R.C.
Corresponding Author
Xiaohong Zhang
Available Online October 2007.
- DOI
- 10.2991/iske.2007.235How to use a DOI?
- Keywords
- Supply chain; independent retailer; push model
- Abstract
In this paper we study the push model and pull model of supply chain with a price-sensitive demand, in which a supplier sells a single product to an independent retailer facing stochastic demand while the retailer price is endogenously determined by the retailer, and compare the performance of supply chain between these two different models. We prove that for the multiplicative form of end-customer demand, at optimality, the wholesale price, order quantity and the retail price in pull model are greater than in push model, respectively. We further demonstrate that there is an interesting contrast: the supplier obtains greater profit in pull models than in push model, but the retailer obtains less profit in push model than in push model.
- Copyright
- © 2007, 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
TY - CONF AU - Xiaohong Zhang AU - Jihong Ou PY - 2007/10 DA - 2007/10 TI - On the Performance of Push and Pull Models with the Price-Sensitive Demand BT - Proceedings of the 2007 International Conference on Intelligent Systems and Knowledge Engineering (ISKE 2007) PB - Atlantis Press SP - 1387 EP - 1394 SN - 1951-6851 UR - https://doi.org/10.2991/iske.2007.235 DO - 10.2991/iske.2007.235 ID - Zhang2007/10 ER -