Discount Pricing Model to Coordinate a Supply Chain under Stochastic Demand Environment

摘要

Here, we have studied a single vendor and multi buyer coordination problem through price discount mechanism. The vendor offers multiple pricing schedules to the retailers and each retailer selects a schedule that maximizes the corresponding individual profit. The model developed here takes into consideration the reaction of each buyer and ensures that the motivation of each retailer to select local optima can also lead to global optima with maximum channel profits. A numerical example is carried out and the results show that channel profit increases with the increase in the number of pricing schedules.