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Pricing, manufacturing and inventory policies for raw material in a three-level supply chain

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  • Ata Allah Taleizadeh
  • Mahsa Noori-daryan

Abstract

We studied a decentralised three-layer supply chain including a supplier, a producer and some retailers. All the retailers order their demands to the producer and the producer order his demands to the supplier. We assumed that the demand is price sensitive and shortage is not permitted. The goal of the paper is to optimise the total cost of the supply chain network by coordinating decision-making policy using Stackelberg–Nash equilibrium. The decision variables of our model are the supplier's price, the producer's price and the number of shipments received by the supplier and producer, respectively. To illustrate the applicability of the proposed model numerical examples are presented.

Suggested Citation

  • Ata Allah Taleizadeh & Mahsa Noori-daryan, 2016. "Pricing, manufacturing and inventory policies for raw material in a three-level supply chain," International Journal of Systems Science, Taylor & Francis Journals, vol. 47(4), pages 919-931, March.
    • Handle: RePEc:taf:tsysxx:v:47:y:2016:i:4:p:919-931
    DOI: 10.1080/00207721.2014.909544
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    Cited by:

    1. Khorshidvand, Behrooz & Soleimani, Hamed & Sibdari, Soheil & Seyyed Esfahani, Mir Mehdi, 2021. "Revenue management in a multi-level multi-channel supply chain considering pricing, greening, and advertising decisions," Journal of Retailing and Consumer Services, Elsevier, vol. 59(C).
    2. Tang, Xiaoying & He, Yong & Salling, Melissza, 2021. "Optimal pricing and production strategies for two manufacturers with industrial symbiosis," International Journal of Production Economics, Elsevier, vol. 235(C).
    3. Nasiri, G. Reza & Deymeh, Hadi & Karimi, Behrooz & Miandoabchi, Elnaz, 2021. "Incorporating sales and marketing considerations into a competitive multi-echelon distribution network design problem with pricing strategy in a stochastic environment," Journal of Retailing and Consumer Services, Elsevier, vol. 62(C).
    4. Rubi Das & Abhijit Barman & Pijus Kanti De, 2022. "Integration of pricing and inventory decisions of deteriorating item in a decentralized supply chain: a Stackelberg-game approach," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 13(1), pages 479-493, February.
    5. Huilin Yao & Rizhao Gong & Zhihui Yuan, 2022. "Multi-Oligopoly Sequential Pricing Mechanisms and Their Game Analysis in Raw Material Supply Chains," Sustainability, MDPI, vol. 14(23), pages 1-21, December.
    6. J.S. Keshminder & Md Aslam Mia & Mohammad Nourani & Miao Zhang, 2022. "Gig employment in the Malaysian manufacturing industry: a cross‐sectional analysis," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 36(1), pages 48-66, May.

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