Title: Optimal pricing and return policy for enterprise under supply chain management
Authors: Quanwu Zhao, Jiaqin Yang
Addresses: School of Business, Shantou University, Shantou, 515063, China. ' Georgia College and State University, Milledgeville, GA 31061, USA
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.
Keywords: inventory models; supply chain management; SCM; enterprise management; perishable goods; buy-back contract; optimal pricing; return policies.
International Journal of Management and Enterprise Development, 2007 Vol.4 No.2, pp.218 - 233
Published online: 22 Dec 2006 *Full-text access for editors Access for subscribers Purchase this article Comment on this article