Author(s)

Yan Guo ¹

Affiliation(s)

¹ Department of Mathematics and Physics, North China Electric Power University, Baoding 071003, China

Corresponding Author

Yan Guo

ABSTRACT

The pricing decision of a two-echelon supply chain is considered in this paper. Two pricing models are established in the case of competition and non-competition. The optimal pricing strategy of the supplier and the retailer are obtained. The conditions of the formation of competition and the influence of competition on the supply chain are analyzed. The results show that the difference in operating efficiency and market share of retailers play an important role in the formation and impact of competition. Smaller differences in operating efficiency and market share make it easier for retailers to compete, but weaken the profits of the supply chain. When the market share difference is large and the operating efficiency difference of retailers is small, competition is beneficial to the supply chain, the supplier and strong retailers.

KEYWORDS

Operational efficiency, Market share, Competition, Supply chain

CITE THIS PAPER

Yan Guo, Pricing of Two-Echelon Supply Chain under Retail Competition. Tourism Management and Technology Economy (2022) Vol. 5: 40-48. DOI: http://dx.doi.org/10.23977/tmte.2022.050108.

REFERENCES

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