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Pricing and retail service decisions in fuzzy uncertainty environments

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  • Zhao, Jing
  • Wang, Lisha

Abstract

This paper studies the pricing and retail service decisions of a product in a supply chain with one manufacturer and two retailers. It is assumed that the supply chain is operated in fuzzy uncertainty environments. The fuzziness is associated with the customer demands, manufacturing costs and service cost coefficients. Three different game structures are considered, i.e., Manufacturer-leader Stackelberg, Retailer-leader Stackelberg, and Vertical Nash. Expected value models are developed to determine the optimal pricing and retail service strategies. The corresponding analytical equilibrium solutions are obtained by solving the models. Finally, numerical examples are presented to illustrate the effectiveness of the theoretical results, and to gain various marketing strategies employed under different situations.

Suggested Citation

  • Zhao, Jing & Wang, Lisha, 2015. "Pricing and retail service decisions in fuzzy uncertainty environments," Applied Mathematics and Computation, Elsevier, vol. 250(C), pages 580-592.
    • Handle: RePEc:eee:apmaco:v:250:y:2015:i:c:p:580-592
    DOI: 10.1016/j.amc.2014.11.005
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    Cited by:

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    4. Seyed Jafar Sadjadi & Hashem Asadi & Ramin Sadeghian & Hadi Sahebi, 2018. "Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract," PLOS ONE, Public Library of Science, vol. 13(4), pages 1-24, April.
    5. Debnath, Biswajit & El-Hassani, Rihab & Chattopadhyay, Amit K. & Kumar, T. Krishna & Ghosh, Sadhan K. & Baidya, Rahul, 2022. "Time evolution of a Supply Chain Network: Kinetic modeling," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 607(C).
    6. Mina Rahimi & Ashkan Hafezalkotob & Sobhan Asian & Luis Martínez, 2021. "Environmental Policy Making in Supply Chains under Ambiguity and Competition: A Fuzzy Stackelberg Game Approach," Sustainability, MDPI, vol. 13(4), pages 1-24, February.

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