Quantifying supply chain ineffectiveness under uncoordinated pricing decisions |
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| Authors: | Chung-Lun Li |
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| Institution: | Department of Logistics, The Hong Kong Polytechnic University, Hung Hom, Kowloon, Hong Kong |
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| Abstract: | We analyze a multiple-stage supply chain model of a seasonal product with pricing decisions. We develop closed-form expressions for the optimal expected profits of different stages. The results enable us to quantify the loss of supply chain profits if uncoordinated pricing decisions are made by supply chain agents. |
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| Keywords: | Supply chain management Newsvendor model Pricing Coordination |
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