Two echelon inventory models with the market price, advertisement, and discount sensitive demand in the non-co-operative environment

In supply chain management manufacturers and retailers are the two most important nodes. Some decision variables are decided by the manufacturer and some are decided by the retailer to maximize their profits. In this work, market demand is considered sensitive to market price, advertising, and disco...

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Published inWārasān Songkhlā Nakharin Vol. 44; no. 4; pp. 1008 - 1017
Main Authors Shiv Kumar Singh Pundhir, Jitendra Kaushik, Anand Kumar Gupta, Sandeep Kumar
Format Journal Article
LanguageEnglish
Published Prince of Songkla University 01.08.2022
Subjects
advertisement cost
discount
manufacturer
retailer
stackelberg models
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Summary:In supply chain management manufacturers and retailers are the two most important nodes. Some decision variables are decided by the manufacturer and some are decided by the retailer to maximize their profits. In this work, market demand is considered sensitive to market price, advertising, and discount given by the manufacturer to the retailer. In this work, EOQ and advertising will be decided by the retailer and a discount will be given by the manufacturer to the retailer to motivate the retailer to generate more market demand. Manufacturers' and retailers' profit models are developed in the non-co-operative environment. Models are verified using dummy data, and sensitivity analysis is performed for all the decision variables for both manufacture and retailer Stackelberg models.
ISSN:0125-3395
DOI:10.14456/sjst-psu.2022.133