Supply Chain Coordination Under Price and Retailer's Brand Quality Dependent Demands

This paper considers a two-echelon supply chain with one manufacturer and two retailers with different brands for a special manufactured product. Then analysis of pricing, quality and supply chain coordination with certain demand is done. The purpose of this work is investigating the impact of price and quality decision variables in a centralized and decentralized model on retailer, producer and supply chain profit functions and to compare their profit functions. Moreover, the first order conditions that the optimal retail price, optimal wholesale price, and optimal demand satisfy are given under the analyze coordination. The results of numerical examples show that Chain efficiency is reduced in a decentralized model.

Keywords:

Pricing , Quality , Certain Demand , Supply Chain Coordination , Retailer , Manufacturer