A two-echelon supply chain model with time-varying selling price and demand rate

Authors

  • Tarun Maiti Jadavpur University
  • Bibhas Chandra Giri Jadavpur University

Abstract

Prices of hi-tech products usually decline with the passage of time because of rapid technical modernization and universal competitiveness as well as high servicing and maintenance cost after products being sold. In this paper, we develop a two-echelon supply chain model wherein a manufacturer supplies a single high-tech product to a retailer under lot-for-lot policy. The retail price of the product is assumed to be a sum of basic price which is taken as a retail fixed markup (RFM) over the manufacturer’s wholesale price and a variable price which is inversely related to the servicing and maintenance cost. Assuming that the retailer’s demand rate is dependent on the retail price, we develop integrated as well as decentralized models with continuous and discrete time selling prices. For numerical examples, we illustrate the developed models and examine the sensitivity of model-parameters.

Author Biographies

Tarun Maiti, Jadavpur University

Post Doctoral Fellow

Department of Mathematics

Bibhas Chandra Giri, Jadavpur University

Associate Professor

Department of Mathematics

Published

2020-01-05

How to Cite

Maiti, T., & Giri, B. C. (2020). A two-echelon supply chain model with time-varying selling price and demand rate. International Journal of Industrial Engineering: Theory, Applications, and Practice, 26(6). Retrieved from https://journals.sfu.ca/ijietap/index.php/ijie/article/view/2106

Issue

Section

Supply Chain Management