Two-Stage Inventory Model with Price Discount under Stochastic Demand

摘要

The price discount is a very effective incentive strategy to improve the business interest of each node and even the overall interest of supply chain. By far, most researches in this field have been based on the certain demand, and there is no detailed verification of the theory before and after the implementation of price discount. So we will fetch up these shortages by studying a two-stage supply chain under stochastic demand, and obtain some important conclusions to provide some management insights.