PRICE COMPETITION OF SUPPLY CHAINS UNDER DEMAND UNCERTAINTY
We study the price competition of two supply chains with demand uncertainty. Each supply chain consists of one risk-averse manufacturer and one risk-averse retailer. We consider two cases: two competing decentralized supply chains and two competing integrated supply chains. We analyze the effects of the demand uncertainty on the supply chains’ expected profits. In the first case, we find that the expected profit of one supply chain is first increasing and then decreasing with the demand uncertainty of himself, otherwise decreasing with the demand uncertainty of his rival. In the other case, we show that the more uncertain the demand of one supply chain, the lower expected profit of himself and the rival’s will be.
Price competition Demand uncertainty Supply chain management
Wei Wang Huijun Sun
MOE Key Laboratory for Urban Transportation Complex Systems Theory, Beijing Jiaotong University 100044, Beijing, Peoples Republic of China
国际会议
北京
英文
236-241
2011-06-08（万方平台首次上网日期，不代表论文的发表时间）