||Under global economic recession, supply chain agents in all kinds of industries are urgent to find some solutions in order to survive. By observing the 3C markets, we propose a cooperation between retailers by inventory sharing. With inventory cooperation, retailers may earn more profit and reduce the cost of inventory. In this study, we model this kind of policy and figure the optimal ordering and pricing strategies for both retailers under inventory cooperation. We model a duopoly competitive environment with two retailers, and find the decisions of pricing and ordering in Nash equilibrium for both retailers, respectively. Furthermore, we consider a possibility of adding the inventory cooperation in our model. As the result, another Nash equilibrium can be founded. We compare these two Nash equilibriums and figure out the range of the flowing price that will make the sharing policy profitable. We show that if our retailers avoid the price competition, there will be a chance that both retailers benefit more by the inventory cooperated mechanism.|
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