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Joint Pricing and Inventory Management of Interbasin Water Transfer Supply Chain

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  • Xue Chen
  • Zhisong Chen

Abstract

Four game-theoretical decision models without/with backlogging for the interbasin water transfer (IBWT) supply chain considering water delivery loss under joint pricing and inventory management (JPIM) are first developed, analyzed, and compared; then, the corresponding numerical and sensitivity analyses are conducted and compared; finally, the managerial insights and practical implementations are summarized in this paper. The research results indicate that (1) a revenue and cost sharing contract could effectively coordinate the IBWT supply chain and improve the operational performance of the IBWT supply chain under JPIM; (2) the partial backlogging strategy of water demand could effectively improve the operational performance of the IBWT supply chain under JPIM; (3) coordination strategy with partial backlogging is the best strategy for improving the operational performance of the IBWT supply chain under JPIM; (4) reducing water delivery loss rate and operational costs and increasing backlogging ratio are beneficial to improving the operational performance of the IBWT supply chain under JPIM.

Suggested Citation

  • Xue Chen & Zhisong Chen, 2020. "Joint Pricing and Inventory Management of Interbasin Water Transfer Supply Chain," Complexity, Hindawi, vol. 2020, pages 1-16, September.
    • Handle: RePEc:hin:complx:3954084
    DOI: 10.1155/2020/3954084
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