Distinct and Joint Price Approaches for Multi-Layer, Multi-Channel Selling Price by Manufacturer

Document Type : Research Paper

Authors

1 M. S. J. Govt. College Bharatpur

2 Maharani Shri Jaya Govt. College, Bharatpur, Rajasthan

3 Department of Mathematics, Govt. College Banmore, M. P., India

Abstract

This article analyses a pricing policy and coordination among members of a three-layer, multi-channel and multi-echelon supply chain, consisting of manufacturers, distributors and retailers. For a single item, demand is assumed to be a linearly decreasing function of time and selling price at the retailer's end. Each supply chain participant earns the largest profit function per unit of time after accounting for expenses. Because the holding cost of commodities is higher in cities than in rural areas, this article proposes a holding cost-sharing idea among wholesalers and merchants. In this article, we maximum retailer initial lot size, selling price, and replenishment time, as well as distributor and manufacturer initial lot size and wholesale pricing. This article is analysed in two frameworks first one is decentralized, and other one is centralized. The optimality conditions of each supply chain member’s profit function have been derived with respect to the decision variables and propositions. The results are shown in the data table to illustrate the model. We have also done sensitivity analysis with numerical examples.

Keywords

References

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Journal of Optimization and Supply Chain Management
Volume 1, Issue 1
September 2024
Pages 50-62

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