WSEAS Transactions on Mathematics
Print ISSN: 1109-2769, E-ISSN: 2224-2880
Volume 13, 2014
Research on the Revenue-Sharing Mechanism based on the Price Game of Retailers
Authors: ,
Abstract: We set up a two level supply chain model which consists of one manufacturer and two retailers in this paper. Necessities as the main research object, we develop the nonlinear demand function of products which is more related to the reality. In order to increase the performance of whole supply chain in the decentralized decision, we introduce revenue sharing mechanism in this paper. Through numerical simulations, we analyze the optimal retail prices of products in the basic model and revenue-sharing model respectively, study the impacts of price sensitive coefficient and price adjustment speed parameter on the performance of supply chain. Investigation results from the analysis reveal that, the revenue-sharing mechanism can effectively improve the profits of retailers, and make the competitive market environment more stable.
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Keywords: Revenue sharing mechanism, game, equilibrium state, price sensitive coefficient, price adjustment, speed parameter
Pages: 484-492
WSEAS Transactions on Mathematics, ISSN / E-ISSN: 1109-2769 / 2224-2880, Volume 13, 2014, Art. #47