Publication Type
Master Thesis
Version
publishedVersion
Publication Date
2010
Abstract
This thesis studies a dual-level decentralized supply chain consisting of two suppliers and two retailers facing a price- and lead-time-sensitive demand. We model the suppliers’ operations as M/M/1 queues and demand as a linear function of the retail prices and promised delivery lead-times offered to the customers. Three different kinds of games are constructed to analyze the pricing and lead-time decisions of the suppliers and retailers. We show the existence of a unique equilibrium in all games and provide the exact formulas to compute the optimal decisions for both the suppliers and retailers. We further present numerical examples to illustrate how the results of our model can be used to provide useful managerial insights for selecting the best strategies for suppliers and retailers under different market and operational environments.
Keywords
pricing, lead time, duopoly common retailer channel, stackelberg game, vertical nash game
Degree Awarded
MSc in Operations Management
Discipline
Operations and Supply Chain Management
Supervisor(s)
WU Zhengping
Publisher
Singapore Management University
City or Country
Singapore
Citation
NIU, Xiuming.
Pricing and Lead Time Decisions in a Duopoly Common Retailer Channel. (2010).
Available at: https://ink.library.smu.edu.sg/etd_coll/67
Copyright Owner and License
Author
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.