An Analysis of Pricing Power Allocation in Supply Chains of Random Yield and Random Demand

摘要

This paper studies the issue of pricing power allocation in supply chains of random yield and random demand. Motivated by the reality, we consider two cases: the retailer is leader and the supplier is leader. In each case, we present some new contracts under which the supply chain can be coordinated and the profit can be arbitrarily divided between the supplier and the retailer. Based on these contracts, the leader can make its profit reach the highest point, where the highest point denotes the maximum possible profit of the leader. Although the wholesale price can not make the supplier's profit reach the highest point when the supplier is leader, we study the optimal profits and decisions under the wholesale price contract by a numerical example.