Optimal pricing and return policy for enterprise under supply chain management
by Quanwu Zhao, Jiaqin Yang
International Journal of Management and Enterprise Development (IJMED), Vol. 4, No. 2, 2007

Abstract: This paper presents an inventory model for perishable goods in a supply chain with a single supplier and multiple competing retailers. The proposed model suggests that when the enterprise (i.e. the supplier) adopts a buy-back contract with optimal pricing and return policy, the inventory competition among retailers can be characterised as a multi-person game with unique, stable solutions. Specifically, the model demonstrates that in terms of enterprise management of a retail supply chain, the enterprise can use the buy-back contract to coordinate the whole chain and allocate the expected profit between the supplier and retailers to achieve a 'win-win' solution.

Online publication date: Fri, 22-Dec-2006

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