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Analyzing pricing, promised delivery lead time, supplier-selection, and ordering decisions of a multi-national supply chain under uncertain environment

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  • Noori-Daryan, Mahsa
  • Taleizadeh, Ata Allah
  • Jolai, Fariborz

Abstract

Nowadays, price and delivery lead time are taken into account as important priorities of customers so that market demand often is sensitive to selling price and promised delivery lead time of products especially in pharmacy industry. Therefore, this study analyzes the optimal decisions of multi-national capacity-constraint producers and one retailer, as the members of a pharmacological chain, under demand response time uncertainty. The retailer, who faces price and delivery lead time dependent demand, orders its needed products from the selected producers with different nationalities to supply the market demand at the promised delivery lead time. Suppose that lost sale shortage occurs when the products are received after this promised lead time. Here, the optimal pricing, ordering, promised lead time, and supplier-selection policies are examined under three different game-theoretic approaches involving a decentralized approach under an open bid auction strategy, a centralized approach as well as a cooperative approach where demand is uncertain. Following, a numerical example and sensitivity analyses are surveyed the efficiency of a proposed model.

Suggested Citation

  • Noori-Daryan, Mahsa & Taleizadeh, Ata Allah & Jolai, Fariborz, 2019. "Analyzing pricing, promised delivery lead time, supplier-selection, and ordering decisions of a multi-national supply chain under uncertain environment," International Journal of Production Economics, Elsevier, vol. 209(C), pages 236-248.
    • Handle: RePEc:eee:proeco:v:209:y:2019:i:c:p:236-248
    DOI: 10.1016/j.ijpe.2017.12.019
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    3. Liu, Zhi & Zheng, Xiao-Xue & Li, Deng-Feng & Liao, Chen-Nan & Sheu, Jiuh-Biing, 2021. "A novel cooperative game-based method to coordinate a sustainable supply chain under psychological uncertainty in fairness concerns," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 147(C).
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    6. Surendra Kansara & Sachin Modgil & Rupesh Kumar, 2023. "Structural transformation of fuzzy analytical hierarchy process: a relevant case for Covid-19," Operations Management Research, Springer, vol. 16(1), pages 450-465, March.
    7. Bieniek, Milena, 2021. "The ubiquitous nature of inventory: Vendor Managed Consignment Inventory in adverse market conditions," European Journal of Operational Research, Elsevier, vol. 291(2), pages 411-420.
    8. Syed Asif Raza, 2022. "A bibliometric analysis of pricing models in supply chain," Journal of Revenue and Pricing Management, Palgrave Macmillan, vol. 21(2), pages 228-251, April.
    9. Adeinat, Hamza & Pazhani, Subramanian & Mendoza, Abraham & Ventura, Jose A., 2022. "Coordination of pricing and inventory replenishment decisions in a supply chain with multiple geographically dispersed retailers," International Journal of Production Economics, Elsevier, vol. 248(C).
    10. Shi‐Woei Lin & Januardi, 2023. "Two‐stage pricing of perishable food supply chain with quality‐keeping and waste reduction efforts," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 44(3), pages 1749-1766, April.
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