Coordinating pricing and inventory decisions in a multi-level supply chain: A game-theoretic approach

Y Huang, G Q Huang, Stephen T Newman

Research output: Contribution to journalArticle

55 Citations (Scopus)
237 Downloads (Pure)

Abstract

This paper concerns coordination of enterprise decisions such as suppliers and components selection, pricing and inventory in a multi-level supply chain composed of multiple suppliers, a single manufacturer and multiple retailers. The problem is modeled as a three-level dynamic non-cooperative game. Analytical and computational methods are developed to determine the Nash equilibrium of the game. Finally, a numerical study in computer industry is conducted to understand the influence of the market scale parameter and the components selection strategy on the optimal decisions and profits of the supply chain as well as its constituent members. Several research findings have been obtained.
Original languageEnglish
Pages (from-to)115-129
Number of pages15
JournalTransportation Research Part E: Logistics and Transportation Review
Volume47
Issue number2
DOIs
Publication statusPublished - Mar 2011

Keywords

  • pricing
  • dynamic non-cooperative game
  • Nash equilibrium
  • inventory
  • multi-level supply chain
  • product family design

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