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Student Number 964206029
Author Chih-chieh Tsai()
Author's Email Address No Public.
Statistics This thesis had been viewed 841 times. Download 426 times.
Department Graduate Institute of Industrial Management
Year 2008
Semester 2
Degree Master
Type of Document Master's Thesis
Language English
Title Pricing Strategies of Retailers under Inventory Cooperated Mechanism
Date of Defense 2009-07-01
Page Count 38
Keyword
  • Duopoly
  • Inventory Sharing
  • Substitutability
  • Supply Chain Competition
  • Abstract 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.
    Table of Content Contents
    Contentsiii
    List of Figuresiv
    List of Tablesv
    Chapter 1Introduction1
    1.1Background and Motivation1
    1.2 Research Objective3
    1.3 Research framework4
    Chapter 2Literature Review5
    2.1Supply chain competition and inventory issues5
    2.2Pricing with substitutability and duopoly6
    2.3The source of our price function7
    2.4Inventory sharing8
    Chapter 3The Model10
    3.1The competitive model12
    3.2The inventory cooperated model13
    Chapter 4Numerical Analysis19
    4.1The order quantity and selling price of retailer19
    4.2The Nash equilibrium between retailers25
    4.3Analysis of profit of retailer27
    4.4Substitutability and competitive degree28
    4.5Numerical example of retailers with different strength32
    Chapter 5Summary36
    Reference37
    Reference Bernstein F., & Federgruen A. (2003). Pricing and Replenishment Strategies in a Distribution System with Competing Retailers. Operations Research, 51(3), 409-426.
    Cachon, G. P. (1999). Competitive and Cooperative Inventory Management in a Two-Echelon Supply Chain with Lost Sales. Available at: http://opim.wharton.upenn.edu/~cachon/pdf/cclost1.pdf
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    Chan, L. M. A., & Simchi-Levi, D. (2005). The Impact of Inventory Sharing on Supple Chain Performance. Available at: http://www.google.com.tw/url?q=http://www.kellogg.northwestern.edu/msom2005/papers/Chan.pdf&ei=5RO9SeCxLpiy6wOmr6jUBA&sa=X&oi=spellmeleon_result&resnum=1&ct=result&cd=1&usg=AFQjCNHeYNrOcwiPKnMGwEs5QKqHuy24yQ
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    Trivedi, M. (1998). Distribution Channels: An Extension of Exclusive Retailership. Management Science, 44(7), 896-909.
    Xiao, T., Xia, Y., & Zhang, G. P. (2007). Strategic Outsourcing Decision for Manufacturers that Product Partially Substitutable Products in a Quantity-Setting Duopoly Situation. Decision Sciences, 38(1), 81-106.
    Zhao, H, Deshpande V., & Ryan J. K. (2002). Inventory Sharing and Rating in Decentralized Dealer Networks. Available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.116.3975&rep=rep1&type=pdf
    Advisor
  • Fu-shiang Tseng(I)
  • Files
  • 964206029.pdf
  • approve immediately
    Date of Submission 2009-07-08

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