A two-echelon supply chain contract under advertisement and retail price-dependent demand

DOI10.1504/IJMOR.2022.121117MaRDI QIDQ2113816zbMATH OpenOpenAlexFDO

Authors Rubi Das, Abhijit Barman, Pijus Kanti De

Publication date 14 March 2022

Published in International Journal of Mathematics in Operational Research (Search for Journal in Brave)

Full work available at URL https://doi.org/10.1504/ijmor.2022.121117

zbMATH Keywords

advertisementcentraliseddecentralisedinventorypriceStackelberg gamesupply chain

Mathematics Subject Classification ID

Inventory, storage, reservoirs (90B05) Marketing, advertising (90B60) Hierarchical games (including Stackelberg games) (91A65)

Review text

Summary: In this study, we have considered the coordination issues of a supply chain system composed of a supplier and a retailer. The supplier offers a single product to the retailer, and the customer demand for the product at the retailer's end is advertisement and retail price dependent. We have investigated the behaviour of the two-layered supply chain under the integrated and non-integrated scenario. Both models' nature provides significant perceptions to an organisation's manager to achieve optimum strategy under price and advertisement dependent demand. The main objective is to maximise the supply chain's overall profit by optimising selling price, wholesale price, order quantity, and replenishment time. We have established the decentralised structure under the Stackelberg game approach to find the optimal values of each channel member. A numerical example and study of sensitivity analysis are provided to validate our proposed model.

Recommendations

• Impact of pricing structure on supply chain coordination with cooperative advertising
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• Coordinating a two-echelon supply chain with price and promotional effort dependent demand

Cited in

(9)

• Multi-manufacturer single-retailer supply chain model under price- and warranty period-dependent demand
• Optimal production and distribution policies for a two-stage supply chain with imperfect items and price- and advertisement-sensitive demand: a note
• Effect of manufacturer's innovation and retailer's promotion under trapezoidal demand with centralized and decentralized options
• Supply chain coordination with two production modes and random demand depending on advertising expenditure and selling price
• Pricing and ordering policies for price-dependent demand in a supply chain of a single retailer and a single manufacturer
• A three layer supply chain coordination policies for price sensitive and exponentially declining demand with recommended retail price by manufacturer
• Payment policy for a three-echelon supply chain management under advertisement-driven demand
• Sustainable production model with advertisement and market price dependent demand under salvage option for defectives
• Supply chain model having stochastic lead time demand with variable production rate and demand dependent on price and advertisement

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