A review on competitive pricing in supply chain management problems: models, classification, and applications

Abstract

Supply chain management (SCM) deals with various strategic, tactical, and operational level decisions in which pricing is of utmost importance to decision makers. Most of the real‐life supply chain pricing problems consider competition as a crucial factor in order to expand the market share and tackle emerging competitors. Accordingly, competitive pricing in SCM has attracted great attention by practitioners and academicians in the last four decades. Now after 40 years, it seems necessary to systematically review and classify the previous studies and present the most appealing future research directions. This paper provides a comprehensive review of the state‐of‐the‐art published papers in scientific journals. Here, 166 papers published from 1983 to 2021 are reviewed and classified to introduce the major models and specific considerations in this field. After reviewing the selected competitive pricing models, some research insights and potential subjects for extending the literature are presented to illustrate the most appropriate and challenging future research directions.

Franchisors’ Strategic Pricing Approaches for Franchise Fee Decisions and the Moderating Role of the Competitive Condition: Evidence from the Korean Franchising Market

“…It can be suggested that the competitive power distribution in the market affects a firm's position and that firms incorporate this information into their strategic decision making. Thus, franchisors' strategic positioning when they are making pricing decisions is impacted by the competitive condition, which ultimately affects their franchise fee decisions (Sudhir 2001;Ziari et al 2022). Based on this rationale, we argue that competitive conditions moderate the influence of cost-and value-based approaches on franchise fees.…”

Managing disruption risk in competing multitier supply chains

“…Besides, the two manufacturers produce substitutable products for the end market. Following the existing literature (Wadecki et al., 2012; Fang and Shou, 2015; Shen et al., 2020; Zhu et al., 2020; Ziari et al., 2022), we suppose that the two manufacturers are engaged in Cournot competition, wherein the market‐clearing prices satisfy $$p_{i}(Q_{i},Q_{j})=\psi -\zeta _{i}Q_{i}-\gamma \zeta _{j}Q_{j}$$. Here, the indexes $$i,j$$ are in $$\lbrace 1,2\rbrace$$ and $$i\ne j$$; $$\psi >0$$ measures the market potential; $$\gamma \in [0,1]$$ measures the competition intensity; and $$Q_{i}$$ represents the order quantity of manufacturer $$M_{i}$$.…”

ISM- and MICMAC-based modelling of dairy supply chain: a study of enablers in Indian economy perspective

“…, 2018). Recently, due to the difficulties posed by the globalisation of supply, processing and distribution networks, as well as high service demands and competitive pricing, SCM has become increasingly important (Ziari et al. , 2022; Gurtu and Johny, 2021).…”

“…A timely distribution network is critical for perishable items such as milk since the perishable factor might disrupt the milk supply chain (Wang et al, 2018). Recently, due to the difficulties posed by the globalisation of supply, processing and distribution networks, as well as high service demands and competitive pricing, SCM has become increasingly important (Ziari et al, 2022;Gurtu and Johny, 2021). SCM improves upstream and downstream links for suppliers and customers.…”