Conditions of Reverse Bullwhip Effect in Pricing for Joint Decision of Replenishment and Pricing with Newsvendor Inventory Policy

摘要

A "reverse bullwhip effect in pricing (RBP)" occurs when an amplification of price variability takes place moving from the upstream suppliers to the downstream customers in a supply chain. Since price variability is considered as one of the major factors that cause the Bullwhip Effect in order quantity, conditions resulting in RBP require a careful examination. In this study, we investigate RBP conditions for supply chains where joint replenishment and pricing decisions are made. We present results for a retailer using a newsvendor inventory policy and facing a random and price-sensitive demand. We present numerical examples for commonly used demand functions.