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Price Competition Model in Centralized and Decentralized Supply Chains with Demand Disruption

In: Liss 2012

Author

Listed:
  • Wenlong Chai

    (Beijing Jiaotong University)

  • Huijun Sun

    (Beijing Jiaotong University)

  • Wei Wang

    (Beijing Jiaotong University)

  • Jianjun Wu

    (Beijing Jiaotong University)

Abstract

The paper studies the price competition of a supply chain with one supplier and tow competing retailers under occasional demand disruption. The demand disruption for two retailers occurs with different probability. The optimal prices of the supplier and two retailers in centralized or decentralized pattern are obtained under demand disruption. We find that the profits of chain partners are decreasing with the occurrence probability of the demand disruption.

Suggested Citation

  • Wenlong Chai & Huijun Sun & Wei Wang & Jianjun Wu, 2013. "Price Competition Model in Centralized and Decentralized Supply Chains with Demand Disruption," Springer Books, in: Zhenji Zhang & Runtong Zhang & Juliang Zhang (ed.), Liss 2012, edition 127, pages 1025-1031, Springer.
    • Handle: RePEc:spr:sprchp:978-3-642-32054-5_144
    DOI: 10.1007/978-3-642-32054-5_144
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    Cited by:

    1. Ali, Syed Mithun & Rahman, Md. Hafizur & Tumpa, Tasmia Jannat & Moghul Rifat, Abid Ali & Paul, Sanjoy Kumar, 2018. "Examining price and service competition among retailers in a supply chain under potential demand disruption," Journal of Retailing and Consumer Services, Elsevier, vol. 40(C), pages 40-47.
    2. Xiaojing Liu, 2016. "Contracting for Competitive Supply Chains under Network Externalities and Demand Uncertainty," Discrete Dynamics in Nature and Society, Hindawi, vol. 2016, pages 1-9, April.

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