Stackelberg Game for Product Renewal in Supply Chain
The paper studied the process of product renewal in a supply chain, which is composed of one manufacturer and one retailer. There are original product and renewal product in the supply chain. A market share shift model for renewal product was firstly built on a increment function and a shift functio...
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| Main Authors: | , , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
2013-01-01
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| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2013/726536 |
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| _version_ | 1832548947937198080 |
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| author | Yong Luo Yamin Lou Shizhao Wang |
| author_facet | Yong Luo Yamin Lou Shizhao Wang |
| author_sort | Yong Luo |
| collection | DOAJ |
| description | The paper studied the process of product renewal in a supply chain, which is composed of one manufacturer and one retailer. There are original product and renewal product in the supply chain. A market share shift model for renewal product was firstly built on a increment function and a shift function. Based on the model, the decision-making plane consisting of two variables was divided into four areas. Since the process of product renewal was divided into two stages, Stackelberg-Nash game model and Stackelberg-merger game model could be built to describe this process. The optimal solutions of product pricing strategy of two games were obtained. The relationships between renewal rate, cost, pricing strategy, and profits were got by numerical simulation. Some insights were obtained from this paper. Higher renewal rate will make participants’ profits and total profit increase at the same margin cost. What is more important, the way of the optimal decision making of the SC was that RP comes onto the market with a great price differential between OP and RP. |
| format | Article |
| id | doaj-art-4c75055c04374de3a2f291a7c1ce9c4a |
| institution | Kabale University |
| issn | 1026-0226 1607-887X |
| language | English |
| publishDate | 2013-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Discrete Dynamics in Nature and Society |
| spelling | doaj-art-4c75055c04374de3a2f291a7c1ce9c4a2025-02-03T06:12:31ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2013-01-01201310.1155/2013/726536726536Stackelberg Game for Product Renewal in Supply ChainYong Luo0Yamin Lou1Shizhao Wang2School of Electrical Engineering, Zhengzhou University, Zhengzhou 450001, ChinaSchool of Electrical Engineering, Zhengzhou University, Zhengzhou 450001, ChinaSchool of Electrical Engineering, Zhengzhou University, Zhengzhou 450001, ChinaThe paper studied the process of product renewal in a supply chain, which is composed of one manufacturer and one retailer. There are original product and renewal product in the supply chain. A market share shift model for renewal product was firstly built on a increment function and a shift function. Based on the model, the decision-making plane consisting of two variables was divided into four areas. Since the process of product renewal was divided into two stages, Stackelberg-Nash game model and Stackelberg-merger game model could be built to describe this process. The optimal solutions of product pricing strategy of two games were obtained. The relationships between renewal rate, cost, pricing strategy, and profits were got by numerical simulation. Some insights were obtained from this paper. Higher renewal rate will make participants’ profits and total profit increase at the same margin cost. What is more important, the way of the optimal decision making of the SC was that RP comes onto the market with a great price differential between OP and RP.http://dx.doi.org/10.1155/2013/726536 |
| spellingShingle | Yong Luo Yamin Lou Shizhao Wang Stackelberg Game for Product Renewal in Supply Chain Discrete Dynamics in Nature and Society |
| title | Stackelberg Game for Product Renewal in Supply Chain |
| title_full | Stackelberg Game for Product Renewal in Supply Chain |
| title_fullStr | Stackelberg Game for Product Renewal in Supply Chain |
| title_full_unstemmed | Stackelberg Game for Product Renewal in Supply Chain |
| title_short | Stackelberg Game for Product Renewal in Supply Chain |
| title_sort | stackelberg game for product renewal in supply chain |
| url | http://dx.doi.org/10.1155/2013/726536 |
| work_keys_str_mv | AT yongluo stackelberggameforproductrenewalinsupplychain AT yaminlou stackelberggameforproductrenewalinsupplychain AT shizhaowang stackelberggameforproductrenewalinsupplychain |