Coordinating supplier retailer and carrier with price discount policy

Li, Liying; Yong, Wang; Dai, Wei

doi:10.1016/j.apm.2015.06.006

Cited by 21 publications

(4 citation statements)

References 25 publications

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“…The second stream of our research is also related to discount contracts in supply chain management. Researches on discount contracts are mainly divided into two parts: quantity discount contract (Shin and Benton, 2007;Zhou, 2007;Chen and Roma, 2011;Yan et al, 2017;Roshanak and Joseph, 2018) and price discount contract (Bernstein and Federgruen, 2005;Cai et al, 2009;Li et al, 2016). Shin and Benton (2007) study a quantity discount contract under uncertain demand conditions.…”

Section: Literature Reviewmentioning

confidence: 99%

Supplier’s cooperation strategy with two competing manufacturers under wholesale price discount contract considering technology investment

et al. 2021

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Cooperation between upstream suppliers and downstream manufacturers in technology investment is a popular way to improve production technology for reducing suppliers' production costs of key components. Technology investments undertaken by manufacturers and wholesale price discount contract provided by suppliers have an important impact on their cooperation. This paper explores whether a supplier should cooperate with two downstream competing manufacturers to accept their technology investments to reduce the supplier's production cost of a key component. Specifically, we consider the following three cooperation strategies: the supplier does not accept manufacturers' technology investments, only accepts one manufacturer's technology investment and accepts both manufacturers' technology investments. Our results demonstrate that the wholesale price discount contract and the technology investment can enhance the profits of the supplier and two manufacturers when the discount degree is low. Further, we conclude that when the discount degree is relatively low or when the discount degree and the technology investment efficiency are relatively high, the supplier's optimal cooperation strategy with two manufacturers is to accept both manufacturers' technology invest-

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Section: Literature Reviewmentioning

confidence: 99%

Supplier’s cooperation strategy with two competing manufacturers under wholesale price discount contract considering technology investment

et al. 2021

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“…Similarly, Woo et al study the ordering decision in a three-echelon supply chain under logistics outsourcing [10]. Li et al examine optimization decisions in a supply chain system with one 3PL, one supplier, and one retailer and analyze the effect of double marginalization on pricing policies [11,12]. The supply chain structure is also used in this paper, but the studies mentioned above do not consider a dominant retailer and the impact of the logistics service level.…”

Section: Literature Reviewmentioning

confidence: 99%

Pricing and Ordering Decisions in a Retailer Dominant Channel Involving a Third‐Party Logistics Provider

Chen

Walker

et al. 2019

Complexity

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This paper theoretically investigates pricing and ordering decisions in a supply chain system comprised of a dominant retailer, a manufacturer, and a third-party logistics (3PL) provider. The paper introduces the logistics service level as an additional variable and obtains the equilibrium pricing and ordering decisions of the supply chain members by applying game theory. Our analysis focuses on the effects of three sensitivity coefficients, i.e., the retailer’s order quantity to the manufacturer’s wholesale price, the 3PL’s logistics service price, and the logistics service level on equilibrium decisions. In addition, we explore the effect of the logistics investment cost and the market risk on equilibrium decisions. Finally, we present a numerical illustration to validate our theoretical results and explore their effects on channel performance.

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“…Zissis et al [ 35 ] obtained closed form expressions of the quantity discounts that minimize the manufacturer's costs. In a supply chain including of a supplier, a retailer, and a carrier, Li et al [ 36 ] obtained wholesale-price discount scheme to coordinate the supply chain by using the profit sharing method. In an automobile supply chain, Luo et al [ 37 ] showed that the discount rate and the subsidy ceiling together lead to the effective incentive scheme.…”

Section: Literature Reviewmentioning

confidence: 99%

Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract

et al. 2018

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This paper studies the Retailer Stackelberg game in a supply chain consisting of two manufacturers and one retailer where they compete simultaneously under three factors including price, service and simple price discount contract. It is assumed that the second manufacturer provides service directly to his customers, and the retailer provides service for the first product’s customers, while the retailer buys the first product under price discount from the first manufacturer. The analysis of the optimal equilibrium solutions and the results of the numerical examples show that if a manufacturer chooses the appropriate range of discount rate, he will gain more profit than when there is no discount given to the retailer. This situation can be considered as an effective tool for the coordination of the first manufacturer and the retailer to offer discount by manufacturer and to provide the service by the retailer. We obtain equilibrium solution of Retailer Stackelberg game and analyze the numerical examples under two cases: a) the manufacturers sell their products to the retailer without price discount contract. b) The first manufacturer sells his products to the retailer with the simple price discount contract. The preliminary results show that the service and the price discount contract can improve the performance of supply chain.

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Coordinating supplier retailer and carrier with price discount policy

Cited by 21 publications

References 25 publications

Supplier’s cooperation strategy with two competing manufacturers under wholesale price discount contract considering technology investment

Supplier’s cooperation strategy with two competing manufacturers under wholesale price discount contract considering technology investment

Pricing and Ordering Decisions in a Retailer Dominant Channel Involving a Third‐Party Logistics Provider

Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract

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