Supply chain coordination with pricing under retailer's brand quality and manufacturer's quality dependent demands

The quality of retailer’s brand and manufacturer’s products can both influence supply chain coordination. In this research, a supply chain is assumed with one manufacturer and two retailers with different brands for a similar product. The research purpose is investigating the impact of pricing and quality decisions on partners’ profit shares and channel efficiency. Therefore, the centralized and decentralized models are analyzed. In addition, the optimal pricing and quality are developed. Finally, the results of numerical study shows that by increasing wholesale prices, the quality efforts of both partners and also channel efficiency levels are decreased. Thus, future research would be concentrated on new mechanism which can consider quality measures to achieve more coordination levels.

Keywords:

Retailer's Brand Quality , Pricing , Supply Chain Coordination , Manufacturer’s Quality