Information Sharing in the Two-Level Manufacturer-Retailer Supply Chain Using the PSSCA

In this paper, a model of a two-level manufacturer-retailer supply chain (TLMRSC) under uncertainty in information sharing (IS)/not sharing information (NIS) was developed. The manufacturer serves as the leader and determines the wholesale price and quality standards, while the retailer serves as the follower and decides the retail price and service level. In this case, there will be a difference between the profit from IS and NIS. According to the results based on PSSCA, the retailer first establishes the retail price before deciding on the service level in line with that price in the NIS. Depending on the selections provided by the retailer, the manufacturer sets the wholesale price and quality standard. The manufacturer obtains market information from the retailer, and the retailer receives manufacturer information on the quality standard. This makes it clear that the leader and retailer have raised the selling price while reducing the service level.

Keywords:

information sharing , Two-Level Manufacturer-Retailer , PSSCA , Uncertainty