Pricing, Advertising, and Service Decisions in a Manufacturer-Retailer Supply Chain with Nash, Stackelberg-Retailer, and Cooperative Games
This paper examines the simultaneous decisions regarding advertising, pricing, and service to supply chain coordination involving one manufacturer and one retailer. Demand is impacted by these decisions, with service playing a crucial role in enhancing customer loyalty and boosting sales. The study...
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| Format: | Article |
| Language: | English |
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Iran University of Science & Technology
2024-12-01
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| Series: | International Journal of Industrial Engineering and Production Research |
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| Online Access: | http://ijiepr.iust.ac.ir/article-1-2108-en.pdf |
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| _version_ | 1846156314152009728 |
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| author | Parinaz Esmaeili Moreza Rasti-Bazroki |
| author_facet | Parinaz Esmaeili Moreza Rasti-Bazroki |
| author_sort | Parinaz Esmaeili |
| collection | DOAJ |
| description | This paper examines the simultaneous decisions regarding advertising, pricing, and service to supply chain coordination involving one manufacturer and one retailer. Demand is impacted by these decisions, with service playing a crucial role in enhancing customer loyalty and boosting sales. The study employs three well-known game theory approaches—Nash, Stackelberg-Retailer, and Cooperative games—to analyze their effects on the supply chain. Optimal strategies for both the manufacturer and the retailer are identified within each approach, and the strategies' results are compared. Results show that the retailer manufacturer, and the entire system achieves higher profits through the Stackelberg-Retailer game compared to the Nash game, while the Cooperative game results in the highest overall profits. Finally, the Nash bargaining model is outlined and analyzed to assess opportunities for sharing profits. |
| format | Article |
| id | doaj-art-566562f6956a4f7aa3efdbe6f0aa413f |
| institution | Kabale University |
| issn | 2008-4889 2345-363X |
| language | English |
| publishDate | 2024-12-01 |
| publisher | Iran University of Science & Technology |
| record_format | Article |
| series | International Journal of Industrial Engineering and Production Research |
| spelling | doaj-art-566562f6956a4f7aa3efdbe6f0aa413f2024-11-26T07:28:43ZengIran University of Science & TechnologyInternational Journal of Industrial Engineering and Production Research2008-48892345-363X2024-12-01354143166Pricing, Advertising, and Service Decisions in a Manufacturer-Retailer Supply Chain with Nash, Stackelberg-Retailer, and Cooperative GamesParinaz Esmaeili0Moreza Rasti-Bazroki1 PHD of Industrial Engineering, Iran University of Science and Technology Isfahan university of technology This paper examines the simultaneous decisions regarding advertising, pricing, and service to supply chain coordination involving one manufacturer and one retailer. Demand is impacted by these decisions, with service playing a crucial role in enhancing customer loyalty and boosting sales. The study employs three well-known game theory approaches—Nash, Stackelberg-Retailer, and Cooperative games—to analyze their effects on the supply chain. Optimal strategies for both the manufacturer and the retailer are identified within each approach, and the strategies' results are compared. Results show that the retailer manufacturer, and the entire system achieves higher profits through the Stackelberg-Retailer game compared to the Nash game, while the Cooperative game results in the highest overall profits. Finally, the Nash bargaining model is outlined and analyzed to assess opportunities for sharing profits.http://ijiepr.iust.ac.ir/article-1-2108-en.pdfsupply chainservicesadvertisingpricinggame theory |
| spellingShingle | Parinaz Esmaeili Moreza Rasti-Bazroki Pricing, Advertising, and Service Decisions in a Manufacturer-Retailer Supply Chain with Nash, Stackelberg-Retailer, and Cooperative Games International Journal of Industrial Engineering and Production Research supply chain services advertising pricing game theory |
| title | Pricing, Advertising, and Service Decisions in a Manufacturer-Retailer Supply Chain with Nash, Stackelberg-Retailer, and Cooperative Games |
| title_full | Pricing, Advertising, and Service Decisions in a Manufacturer-Retailer Supply Chain with Nash, Stackelberg-Retailer, and Cooperative Games |
| title_fullStr | Pricing, Advertising, and Service Decisions in a Manufacturer-Retailer Supply Chain with Nash, Stackelberg-Retailer, and Cooperative Games |
| title_full_unstemmed | Pricing, Advertising, and Service Decisions in a Manufacturer-Retailer Supply Chain with Nash, Stackelberg-Retailer, and Cooperative Games |
| title_short | Pricing, Advertising, and Service Decisions in a Manufacturer-Retailer Supply Chain with Nash, Stackelberg-Retailer, and Cooperative Games |
| title_sort | pricing advertising and service decisions in a manufacturer retailer supply chain with nash stackelberg retailer and cooperative games |
| topic | supply chain services advertising pricing game theory |
| url | http://ijiepr.iust.ac.ir/article-1-2108-en.pdf |
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