We examine alternative wholesale pricing strategies (uniform wholesale price-UWP and retailer-specific wholesale price-RSWP) for a single supplier selling to multiple retailers in this paper. The supply chain setting considered is one in which the supplier operates with or without limited capacity and retailers differ in terms of their efficiencies and operate in either independent or competitive markets. Our results indicate that in general, the market structure and demand uncertainty does not impact the individual supply chain member's profits. In essence, the supplier would prefer to adopt a RSWP scheme which would also benefit a less efficient retailer but would adversely impact a more efficient retailer. On the other hand, we are able to show that under certain conditions, the total supply chain profits are greater under the UWP scheme as compared to the RSWP scheme. Thus, in settings where regulatory requirements (such as the Robinson-Patman Act) do not allow for the RSWP scheme, the supplier could adopt a UWP scheme and recover his/her losses (in comparison to the RSWP scheme) by levying a fixed fee to the more efficient retailer who stands to gain with the implementation of a UWP scheme.
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