Title: Optimal wholesale price for producer in supply chain under newsboy environment

Authors: M.A. Darwish; Majid Aldaihani

Addresses: Department of Industrial and Management Systems Engineering, College of Engineering and Petroleum, Kuwait University, P.O. Box 5969, 13060 Safat, Kuwait ' Department of Industrial and Management Systems Engineering, College of Engineering and Petroleum, Kuwait University, P.O. Box 5969, 13060 Safat, Kuwait

Abstract: The lifecycles of technology-based products are rapidly becoming shorter through endless technological innovation. As a result, researchers and practitioners paid much attention on operations management issues for newsvendor-type products. However, due to the globalisation of market and keen competition, optimising supply chain decisions becomes very important and many researchers have turned their attention to the supply chain management for newsvendor-type products. In this paper, a model for supply chain with one producer and multiple retailers is considered. The retailers order quantities of the product based on newsvendor rule and the producer adjusts the production run accordingly. The purpose of the developed model is to find the optimal wholesale price which maximises the expected profit of the producer.

Keywords: operations research; supply chain management; SCM; newsvendor problem; wholesale prices; optimisation.

DOI: 10.1504/IJOR.2013.056687

International Journal of Operational Research, 2013 Vol.18 No.3, pp.304 - 317

Available online: 21 Aug 2013 *

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