Pricing with Imperfect Quality Product in Two-Member Supply Chain

摘要

Consider a two-member's supply chain which is composed of one manufacturer and one retailer.Under the condition of imperfect quality,two situations have been discussed:Firstly,the manufacturer how to set a wholesale price and coordinate with the retailer when they do not like to collaborate with each other.Secondly,If they choose to collaborate,then what should the manufacturer do?Conclusions of this Paper suggest that the manufacturer should select making decisions and pricing by himself under the condition of high rate of imperfect quality items,whereas he should collaborate with the retailer and gain co-win when the rate of the imperfect quality items is low.Furthermore,under the condition of cooperation,how to distribute the profits has been illuminated.