IDEAS home Printed from https://ideas.repec.org/a/jfr/jms111/v3y2012i4p1-14.html
   My bibliography  Save this article

Seller ¨C Buyer Supply Chain Games Where Shortage Are Permitted

Author

Listed:
  • Xu Zhang
  • Panlop Zeephongsekul
  • Maryam Esmaeili

Abstract

In the area of seller-buyer supply chain management, researchers have been very active in seeking optimal policies for both players to achieve a favorable outcome. Most studies are based on somewhat unrealistic assumptions such as deterministic demand and unpermitted shortages. In reality, due to factors such as irregular production capacity or unanticipated demands, shortages will occur, and it will influence both players¡¯ decisions. In this paper, we include shortage as a decision variable determined by the seller, and demand is assumed sensitive to both selling price and marketing expenditure. The interaction between seller and buyer will be investigated as non-cooperative Stackelberg game, and the cooperation between seller and buyer will be explored based on Pareto-efficient solution concept. Consequences of the non¨Ccooperative and cooperative aspects of these games will be compared and finally, numerical examples and sensitivity analysis will be presented to compare between models with and without shortages.

Suggested Citation

  • Xu Zhang & Panlop Zeephongsekul & Maryam Esmaeili, 2012. "Seller ¨C Buyer Supply Chain Games Where Shortage Are Permitted," Journal of Management and Strategy, Journal of Management and Strategy, Sciedu Press, vol. 3(4), pages 1-14, November.
  • Handle: RePEc:jfr:jms111:v:3:y:2012:i:4:p:1-14
    as

    Download full text from publisher

    File URL: http://www.sciedu.ca/journal/index.php/jms/article/view/1938/1188
    Download Restriction: no

    File URL: http://www.sciedu.ca/journal/index.php/jms/article/view/1938
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dai, Yue & Chao, Xiuli & Fang, Shu-Cherng & Nuttle, Henry L.W., 2005. "Pricing in revenue management for multiple firms competing for customers," International Journal of Production Economics, Elsevier, vol. 98(1), pages 1-16, October.
    2. Sarmah, S.P. & Acharya, D. & Goyal, S.K., 2006. "Buyer vendor coordination models in supply chain management," European Journal of Operational Research, Elsevier, vol. 175(1), pages 1-15, November.
    3. Viswanathan, S. & Wang, Qinan, 2003. "Discount pricing decisions in distribution channels with price-sensitive demand," European Journal of Operational Research, Elsevier, vol. 149(3), pages 571-587, September.
    4. Z. Kevin Weng, 1995. "Channel Coordination and Quantity Discounts," Management Science, INFORMS, vol. 41(9), pages 1509-1522, September.
    5. Jaber, M.Y. & Goyal, S.K., 2008. "Coordinating a three-level supply chain with multiple suppliers, a vendor and multiple buyers," International Journal of Production Economics, Elsevier, vol. 116(1), pages 95-103, November.
    6. Esmaeili, M. & Aryanezhad, Mir-Bahador & Zeephongsekul, P., 2009. "A game theory approach in seller-buyer supply chain," European Journal of Operational Research, Elsevier, vol. 195(2), pages 442-448, June.
    7. Esmaeili, M. & Zeephongsekul, P., 2010. "Seller-buyer models of supply chain management with an asymmetric information structure," International Journal of Production Economics, Elsevier, vol. 123(1), pages 146-154, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Esmaeili, M. & Zeephongsekul, P., 2010. "Seller-buyer models of supply chain management with an asymmetric information structure," International Journal of Production Economics, Elsevier, vol. 123(1), pages 146-154, January.
    2. Esmaeili, M. & Aryanezhad, Mir-Bahador & Zeephongsekul, P., 2009. "A game theory approach in seller-buyer supply chain," European Journal of Operational Research, Elsevier, vol. 195(2), pages 442-448, June.
    3. Duan, Lisha & Ventura, José A., 2019. "A Dynamic Supplier Selection and Inventory Management Model for a Serial Supply Chain with a Novel Supplier Price Break Scheme and Flexible Time Periods," European Journal of Operational Research, Elsevier, vol. 272(3), pages 979-998.
    4. Konstantin Kogan, 2019. "Discounting revisited: evolutionary perspectives on competition and coordination in a supply chain with multiple retailers," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 27(1), pages 69-92, March.
    5. Venegas, Bárbara B. & Ventura, José A., 2018. "A two-stage supply chain coordination mechanism considering price sensitive demand and quantity discounts," European Journal of Operational Research, Elsevier, vol. 264(2), pages 524-533.
    6. Beullens, Patrick, 2014. "Revisiting foundations in lot sizing—Connections between Harris, Crowther, Monahan, and Clark," International Journal of Production Economics, Elsevier, vol. 155(C), pages 68-81.
    7. Chakraborty, Abhishek & Chatterjee, Ashis K., 2016. "A surcharge pricing scheme for supply chain coordination under JIT environment," European Journal of Operational Research, Elsevier, vol. 253(1), pages 14-24.
    8. Jaber, M.Y. & Goyal, S.K., 2008. "Coordinating a three-level supply chain with multiple suppliers, a vendor and multiple buyers," International Journal of Production Economics, Elsevier, vol. 116(1), pages 95-103, November.
    9. Mutlu, Fatih & Çetinkaya, Sıla, 2020. "Supplier–carrier–buyer channels: Contractual pricing for a carrier serving a supplier–buyer partnership," International Journal of Production Economics, Elsevier, vol. 230(C).
    10. Youkyung Won, 2016. "Dominance Relationship Among the Retailer’s Strategies Under the Semi-Stackelberg Newsvendor Situation with Quantity Discounts," Asia-Pacific Journal of Operational Research (APJOR), World Scientific Publishing Co. Pte. Ltd., vol. 33(02), pages 1-20, April.
    11. Qiu, Xuan & Lee, Chung-Yee, 2019. "Quantity discount pricing for rail transport in a dry port system," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 122(C), pages 563-580.
    12. Ray, Saibal & Gerchak, Yigal & Jewkes, Elizabeth M., 2005. "Joint pricing and inventory policies for make-to-stock products with deterministic price-sensitive demand," International Journal of Production Economics, Elsevier, vol. 97(2), pages 143-158, August.
    13. Ponte, Borja & Puche, Julio & Rosillo, Rafael & de la Fuente, David, 2020. "The effects of quantity discounts on supply chain performance: Looking through the Bullwhip lens," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 143(C).
    14. L Lei & Q Wang & C Fan, 2006. "Optimal business policies for a supplier–transporter–buyer channel with a price-sensitive demand," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 57(3), pages 281-289, March.
    15. Sarmah, S.P. & Acharya, D. & Goyal, S.K., 2006. "Buyer vendor coordination models in supply chain management," European Journal of Operational Research, Elsevier, vol. 175(1), pages 1-15, November.
    16. Adeinat, Hamza & Ventura, José A., 2015. "Determining the retailer's replenishment policy considering multiple capacitated suppliers and price-sensitive demand," European Journal of Operational Research, Elsevier, vol. 247(1), pages 83-92.
    17. Yu, Yugang & Chu, Feng & Chen, Haoxun, 2009. "A Stackelberg game and its improvement in a VMI system with a manufacturing vendor," European Journal of Operational Research, Elsevier, vol. 192(3), pages 929-948, February.
    18. Bylka, Stanislaw, 2009. "Non-cooperative strategies for production and shipments lot sizing in the vendor-buyer system," International Journal of Production Economics, Elsevier, vol. 118(1), pages 243-252, March.
    19. Salma Karray & Chirag Surti, 2016. "Channel coordination with quantity discounts and/or cooperative advertising," International Journal of Production Research, Taylor & Francis Journals, vol. 54(17), pages 5317-5335, September.
    20. Li, Xiuhui & Wang, Qinan, 2007. "Coordination mechanisms of supply chain systems," European Journal of Operational Research, Elsevier, vol. 179(1), pages 1-16, May.

    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:jfr:jms111:v:3:y:2012:i:4:p:1-14. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Jenny Zhang (email available below). General contact details of provider: http://jms.sciedupress.com .

    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.