Optimal pricing strategy in a coordinated supply chain
by Enrico Sulaiman, Wooseung Jang
International Journal of Integrated Supply Management (IJISM), Vol. 2, No. 1/2, 2006

Abstract: The faster product development, market globalisation, and increased competition force companies to make coordinated and integrated decisions. Therefore, a coordinated supply chain becomes an increasingly important issue. The objective of this research is to quantify the value of the joint coordination and to derive the pricing and ordering strategy that achieves partial or maximal coordination of the supply chain under information sharing. We consider two stage supply chain models consisting of one distributor and one manufacturer with linear and concave production costs. Our analysis suggests that while the value of coordination through information sharing can be quite high, the information can be taken advantage of by the manufacturer. We also show that the larger the supply chain, the cheaper the optimal price inside the chain, and hence, expanding the supply chain by adding new distributors is beneficial to all members of the chain.

Online publication date: Mon, 05-Dec-2005

The full text of this article is only available to individual subscribers or to users at subscribing institutions.

Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.

Pay per view:
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.

Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Integrated Supply Management (IJISM):
Login with your Inderscience username and password:

    Username:        Password:         

Forgotten your password?

Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.

If you still need assistance, please email subs@inderscience.com