Joint pricing and inventory replenishment decisions in a multi-level supply chain

Yun Huang, George Q. Huang

Research output: Journal article publicationJournal articleAcademic researchpeer-review

Abstract

This paper coordinates pricing and inventory replenishment decisions in a multi-level supply chain composed of multiple suppliers, one manufacturer and multiple retailers. We model this problem as a three-level nested Nash game where all the suppliers formulate the bottom-level Nash game, the whole supplier sector play the middle-level Nash game with the manufacturer, and both sectors as a group player formulate the top-level Nash game with the retailers. Analytical method and solution algorithm are developed to determine the equilibrium of the game. A numerical study is conducted to understand the influence of different parameters on the decisions and profits of the supply chain and its constituent members. Several interesting research findings have been obtained.

Original languageEnglish
JournalEngineering Letters
Volume18
Issue number4
Publication statusPublished - 23 Nov 2010
Externally publishedYes

Keywords

  • Multi-level supply chain
  • Nash game
  • Pricing
  • Replenishment

ASJC Scopus subject areas

  • General Engineering

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