Making Pricing and Inventory Decisions in a Supply Chain with Retailer Competition

摘要

In our paper, we study the green supply chain, which includes one manufacturer and one retailer. We use the idea of Stacklberg game and buyback contract, through modeling and using the MATLAB software, and we show that: In the green supply chain, with the increase of market potential, the average product return rate, order quantity, retail price, profits of the manufacturer and the retailer increase. However, the wholesale price is almost no change. With the increasing cost, the average product return rate, order quantity, the profits of the manufacturer and the retailer reduce, but both the retail price and wholesale price increase very slowly. Manufacturer and retailer use the buyback contracts to share risks and moreover, improve operational efficiency of the supply chain. Manufacturer, as well as retailer gain greater competitive advantage in the supply chain to make their profit maximization.