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Abstract. This paper deals with an Economic Production Quantity (EPQ) model to determine production-inventory policies for perishable products. Shortage is permitted and fully backordered. The demand rate is stochastic-and stock-dependent. Since the problem is mathematically challenging and intractable via analytical approaches, this paper designs a simulation-based optimization algorithm by combining a grid search and a simulation model to solve the problem. The grid search plays the role of optimizer to determine the model variables, and the simulation model is utilized to evaluate the quality of solutions obtained by the optimizer through an iterative procedure. Eventually, a numerical example is discussed to illustrate how the solution procedure works, and a comparison study is carried out to demonstrate the superiority of suggested approach. Moreover, a comprehensive sensitivity analysis with respect to the problem parameters is performed.

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This paper addresses the coordination of pricing, advertising, and production-inventory decisions in a multi-product three-echelon supply chain composed of multiple suppliers, single manufacturer, and multiple retailers. The demand of each product is considered to be non-linearly influenced by the retail price and advertising expenditure. Taking into account the dominant power of the manufacturer and the suppliers' oligopoly competition, this paper aims at obtaining the equilibrium prices at each level of the supply chain and comparing two different scenarios of competitions and cooperation: The former focuses on the situation where the single manufacturer has the dominant power in the supply chain and acts as the leader followed by the retailers and the suppliers simultaneously. The latter implies the situation in which the dominant manufacturer enters cooperation with each independent retailer to boost sales while the suppliers play the role of the followers simultaneously. We develop the Stackelberg-Nash game (SNG), and the Stackelberg-Nash game with cooperation (SNGC) formulations to model the two market structures. The equilibrium decisions are achieved through the optimization methods and the existence and uniqueness properties are explored. Finally, analytical and computational analyses are carried out through a numerical example, and a comprehensive sensitivity analysis is conducted to discuss some managerial insights such as increasing competition among suppliers leads to reducing retail prices.2010 Mathematics Subject Classification. Primary: 91B25, 91A12, 91A40; Secondary: 90B60, 90B30, 90B05.