Optimizing pricing and ordering strategies in a three-level supply chain under return policy

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NOORI DARYAN MAHSA; TALEIZADEH ATA ALLAH

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Journal Paper

Paper Information

Journal: JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL Year:2019 | Volume:15 | Issue:1 Page(s): 73-80

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Title

Optimizing pricing and ordering strategies in a three-level supply chain under return policy

Author(s)

NOORI DARYAN MAHSA | TALEIZADEH ATA ALLAH | Issue Writer Certificate

Keywords

Pricing

Ordering

Production

Return policy

Shortage

Nash-equilibrium game

Supply chain

Abstract

This paper develops an economic Production quantity model in a three-echelon Supply chain composing of a supplier, a manufacturer and a wholesaler under two scenarios. As the first scenario, we consider a return contract between the outside supplier and the supplier and also between the manufacturer and the wholesaler, but in the second one, the Return policy between the manufacturer and the wholesaler is not applied. Here, it is assumed that Shortage is permitted and demand is price-sensitive. The principal goal of the research is to maximize the total profit of the chain by optimizing the order quantity of the supplier and the selling prices of the manufacturer and the wholesaler. Nash-equilibrium approach is considered between the chain members. In the end, a numerical example is presented to clarify the applicability of the introduced model and compare the profit of the chain under two scenarios.

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APA: Copy

NOORI DARYAN, MAHSA, & TALEIZADEH, ATA ALLAH. (2019). Optimizing pricing and ordering strategies in a three-level supply chain under return policy. JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL, 15(1), 73-80. SID. https://sid.ir/paper/310200/en

Vancouver: Copy

NOORI DARYAN MAHSA, TALEIZADEH ATA ALLAH. Optimizing pricing and ordering strategies in a three-level supply chain under return policy. JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL[Internet]. 2019;15(1):73-80. Available from: https://sid.ir/paper/310200/en

IEEE: Copy

MAHSA NOORI DARYAN, and ATA ALLAH TALEIZADEH, “Optimizing pricing and ordering strategies in a three-level supply chain under return policy,” JOURNAL OF INDUSTRIAL ENGINEERING INTERNATIONAL, vol. 15, no. 1, pp. 73–80, 2019, [Online]. Available: https://sid.ir/paper/310200/en

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