Cooperative Pricing of Apparel Supply Chain Based on API

• Published in: Applied Mechanics and Materials Vol. 58-60; no. Information Technology for Manufacturing Systems II; pp. 28 - 35
• Main Authors: Zhang, Ge Fu, Wang, Dong Hui
• Format: Journal Article
• Language: English
• Published: Zurich Trans Tech Publications Ltd 01.06.2011
• Subjects: API; Construction; Games; Mathematical models; Pricing; Strategy; Supply chains; Quick Response; Game; Multi-Objective Optimization (MOP); Apparel Supply-Chain; Collaborative Pricing
• ISBN: 303785149X; 9783037851494
• ISSN: 1660-9336; 1662-7482; 1662-7482
• DOI: 10.4028/www.scientific.net/AMM.58-60.28

The purpose of this paper is to construct a multi-objective optimization model for cooperative pricing in the management of apparel supply chain. Firstly, by using Apparel Popularity Index (API) model, a kind of pricing model for supply chain has been built. Then, by introducing cooperation and other constraint conditions, a kind of cooperative pricing model was constructed. This model is a kind of Stackelberg game. The manufacturer and the retailer obtained their excess profits through the game. Lastly, this paper gave a numerical example which demonstrated that the excess profit of the cooperative supply chain was constant, and when the constraint conditions changed, the excess profit space would change at the meantime. This research result can help partners on apparel supply chain to practice Quick Response strategy.