Supply Chain Coordination under Price Competition

Supply Chain Coordination under Price Competition

Author: 
Sarmah, S.P.
Place: 
Hershey, PA
Publisher: 
IGI Global
Date published: 
2010
Record type: 
Responsibility: 
Sinha, Santanu, jt. author
Editor: 
Mahdavi, Iraj
Journal Title: 
Electronic Supply Network Coordination in Intelligent and Dynamic Environments
Source: 
Electronic Supply Network Coordination in Intelligent and Dynamic Environments
Abstract: 

This chapter analyzes the coordination and competition issues in a two-stage supply-chain in which a vendor distributes a product to two different retailers who compete on their retail prices in the same market. The demand faced by each retailer not only depends on its own price, but also on the price set by the other retailer. Mathematical models have been developed to analyze the coordination mechanism. It is shown here that perfect channel coordination can be achieved by employing simultaneously quantity discounts, volume discounts and franchise fees. Further, it has been shown that under non-cooperative price competition, the steady state equilibrium is dynamically stable in nature under certain conditions. The model is illustrated with suitable numerical examples.

Series: 
Advances in Business Information Systems and Analytics

CITATION: Sarmah, S.P.. Supply Chain Coordination under Price Competition edited by Mahdavi, Iraj . Hershey, PA : IGI Global , 2010. Electronic Supply Network Coordination in Intelligent and Dynamic Environments - Available at: https://library.au.int/supply-chain-coordination-under-price-competition