Single-vendor multi-buyer discount pricing model: an evolutionary computation-based approach

DOI10.1504/IJOR.2010.033101MaRDI QIDQ973437zbMATH OpenOpenAlexFDO

Authors Santanu Sinha, S. P. Sarmah

Publication date 31 May 2010

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

Full work available at URL https://doi.org/10.1504/ijor.2010.033101

zbMATH Keywords

channel profitcommon order intervaldiscount pricing modelsdiscount schedulesevolutionary computationheterogeneous buyersSCMsupply chain coordinationsupply chain management

Mathematics Subject Classification ID

Transportation, logistics and supply chain management (90B06) Deterministic scheduling theory in operations research (90B35) Approximation methods and heuristics in mathematical programming (90C59)

Review text

Summary: A single-vendor multi-buyer supply chain coordination problem through optimal discount pricing policy has been studied. The seller offers multiple pricing schedules to the buyers and each buyer selects a schedule that maximises the corresponding individual profit. The model considers the reaction of each buyer and ensures that the motivation of each buyer to select local optima can also lead to global optima with maximum channel profits. The results show that channel profit increases with the increase in the number of pricing schedules. An evolutionary computation-based technique has been proposed to solve the model. The model can find significant practical applicability towards solving industrial problems.

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Cited in

(1)

• Discounting revisited: evolutionary perspectives on competition and coordination in a supply chain with multiple retailers

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