Price competition model in decentralized and centralized supply chains with demand disruption

Purpose: The paper studies the price competition of a supply chain with one supplier and two competing retailers under occasional demand disruption. Design/methodology/approach: The supply chain is either decentralized or centralized. The demand disruption for two retailers occurs with different pro...

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Detalles Bibliográficos
Autores: Wenlong, Chai, Huijun, Sun, Wang, Wei, Jianjun, Wu
Tipo de recurso: artículo
Fecha de publicación:2013
País:España
Institución:Universitat Politècnica de Catalunya (UPC)
Repositorio:UPCommons. Portal del coneixement obert de la UPC
Idioma:inglés
OAI Identifier:oai:upcommons.upc.edu:2099/13102
Acceso en línea:https://hdl.handle.net/2099/13102
Access Level:acceso abierto
Palabra clave:Physical distribution of goods
Competition
Demand disruption
Probability
Price competition
Profit
Distribució de mercaderies
Competència econòmica
Àrees temàtiques de la UPC::Economia i organització d'empreses::Direcció d'operacions
Descripción
Sumario:Purpose: The paper studies the price competition of a supply chain with one supplier and two competing retailers under occasional demand disruption. Design/methodology/approach: The supply chain is either decentralized or centralized. The demand disruption for two retailers occurs with different probability. We analyze the effect of occurrence probability of demand disruption on the optimal prices of the supplier and two retailers. Findings: We find that the profits of supplier, retailers and supply chain are decreasing with the occurrence probability of demand disruption. Originality/value: It is helpful for supply chain members to adjust the original contracts to demand disruption.