Collaborative pricing and replenishment policy for hi-tech industry |
| |
Authors: | P C Yang H M Wee J C P Yu |
| |
Affiliation: | 1.St John's University,Taipei,Taiwan;2.Chung Yuan Christian University,Chungli,Taiwan;3.Takming College,Taipei,Taiwan |
| |
Abstract: | Owing to rapid technological innovation and severe competition, the upstream component price and the downstream product cost of hi-tech industries like computers and communication consumer's products usually decline significantly with time. From a practical viewpoint, there is a need to develop a collaborative pricing and replenishing model with finite horizon when the vendor's purchase cost and the end-consumer's market price are reduced simultaneously. To entice collaboration, the vendor may offer some price discount to the buyer using a negotiation factor to balance the net profit for each player. A numerical example and sensitivity analysis are carried out to illustrate the model. Our results indicate that higher decline-rate in the vendor's purchase cost leads to a smaller vendor lot size, and the higher decline-rate in the market price leads to a larger buyer lot size. The percentage increase in the net profit is approximately 6.57% when cost/price reduction is considered. Therefore, it is significant to consider the effect of the cost/price reduction, especially in hi-tech industries. |
| |
Keywords: | |
本文献已被 SpringerLink 等数据库收录! |
|