Journal
ASIA-PACIFIC JOURNAL OF OPERATIONAL RESEARCH
Volume 34, Issue 1, Pages -Publisher
WORLD SCIENTIFIC PUBL CO PTE LTD
DOI: 10.1142/S0217595917400036
Keywords
Big data; assembly system; leader-follower structure; key supplier-leader; manufacturer-leader
Categories
Funding
- National Natural Science Foundation of China [71372019, 71102174, 71521002]
- Beijing Higher Education Young Elite Teacher Project [YETP1173]
- Beijing Philosophy and Social Science Foundation of China [11JGC106]
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The last decade has witnessed an increase in the number of big-data-based businesses, in particular for those industries with complicated supply chain structure. This paper investigates the pricing and production strategies in a decentralized supply chain composed of a manufacturer, a key supplier, and a general supplier. We establish two different leader-follower structure models. One is the key supplier-leader game, in which the key supplier decides the prices for the other two components, and the manufacturer and general supplier determine the order and production quantities, respectively. The other model is the manufacturer-leader game, in which the manufacturer offers the prices for the other two components, and the suppliers determine the product quantities. We show that equilibrium price and production quantity under the key supplier-leader game are higher than those under the manufacturer-leader game. The key supplier-leader game is suitable for the channel. Moreover, we show that channel payoff has a non-monotonic relation with the production cost of suppliers; it initially increases and then decreases with production costs.
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