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Coordinating pricing and inventory decisions in a multi-level supply chain: A game-theoretic approach

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Author Info

  • Huang, Yun
  • Huang, George Q.
  • Newman, Stephen T.
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    Abstract

    This paper concerns coordination of enterprise decisions such as suppliers and components selection, pricing and inventory in a multi-level supply chain composed of multiple suppliers, a single manufacturer and multiple retailers. The problem is modeled as a three-level dynamic non-cooperative game. Analytical and computational methods are developed to determine the Nash equilibrium of the game. Finally, a numerical study in computer industry is conducted to understand the influence of the market scale parameter and the components selection strategy on the optimal decisions and profits of the supply chain as well as its constituent members. Several research findings have been obtained.

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    Bibliographic Info

    Article provided by Elsevier in its journal Transportation Research Part E: Logistics and Transportation Review.

    Volume (Year): 47 (2011)
    Issue (Month): 2 (March)
    Pages: 115-129

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    Handle: RePEc:eee:transe:v:47:y:2011:i:2:p:115-129

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    Related research

    Keywords: Multi-level supply chain Dynamic non-cooperative game Nash equilibrium Product family design Pricing Inventory;

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