Optimal Ordering And Pricing Models Of A Two-Echelon Supply Chain Under Multipletimes Ordering

This paper studies ordering and pricing issues under multiple times ordering. A manufacturer and a retailer are involved in our discussion. The deffnition of a reasonable price is given based on the practical requirement. First, we construct a Stackelberg model in which the manufacturer and the retailer make their decisions respectively. During the process of derivation, both ordering time-points and optimal prices are expressed as functions of number of times of ordering. By solving a quadratic programming model with an undetermined parameter, we demonstrate that the optimal ordering time-points of the retailer are equidistant time points on the given selling period. Second, a cooperative model is developed in which the manufacturer and the retailer jointly make decisions. It is shown that the optimal retail price is than the noncooperative one.