IDEAS home Printed from https://ideas.repec.org/a/ids/ijlsma/v31y2018i1p69-81.html
   My bibliography  Save this article

The impact of pricing, lead time and capacity policies in a two-echelon supply chain

Author

Listed:
  • Arash Apornak

Abstract

Lead-time, price and capacity are common strategies used in supply chains facing uncertain or variable demand. Each provides a mechanism to absorb the uncertainty. In some supply chains, products must be produced before demand is realised. This typically is caused in situations where production takes a long time and the selling period is short, fashion goods for instance. In this paper we assume a two-echelon supply chain consisting of a supplier and a retailer facing price and lead time sensitive demand. The decision process is modelled by Nash equilibrium and Stackelberg game. The equilibrium strategy of these two players is obtained by investigating the impact of variable decisions on the players' profit then compares the performance of the corresponding chain and capacity decision according to historical data as a benchmark. The results illustrated that the profit of supplier and retailer is more Nash equilibrium compared with Stackelberg game.

Suggested Citation

  • Arash Apornak, 2018. "The impact of pricing, lead time and capacity policies in a two-echelon supply chain," International Journal of Logistics Systems and Management, Inderscience Enterprises Ltd, vol. 31(1), pages 69-81.
    • Handle: RePEc:ids:ijlsma:v:31:y:2018:i:1:p:69-81
    as

    Download full text from publisher

    File URL: http://www.inderscience.com/link.php?id=94191
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. 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.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ids:ijlsma:v:31:y:2018:i:1:p:69-81. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sarah Parker (email available below). General contact details of provider: http://www.inderscience.com/browse/index.php?journalID=134 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.