This paper studies the interaction between two key quality management decisions—input conformance and inspection policy—and related wholesale retail prices in a echelon supply chain. Market demand depends on price as well end-product quality, which itself input scheme. Consistent with previous empirical findings literature, we show that an increase does not always result higher for consumers du...

The literature under random component yield has focused on coordination of supply chain at the determined price, where decision maker chooses its optimal production quantities. The authors consider a centralized system when the price is not determined under both random yield and demand. Type A with perfect quality and type B with imperfect quality are produced due to the random yield. They prov...

Consider a supply chain involving an independent retailer and an independent manufacturer. The manufacturer produces a single product and sells it exclusively through the retailer. Using this supply chain framework, we develop a game theoretic model to study two commonly observed practices of selling extended warranties: the manufacturer offers the extended warranty directly to the end consumer...

In this paper we analyze equilibria in competitive environments under constraints across players’ strategies. This means that the action taken by one player limits the possible choices of the other players. In this context the usual approach to show existence of equilibrium, Kakutani’s Fixed Point theorem, cannot be applied directly. In particular, best replies against a given strategy profile ...

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This study explores the problem of optimally dynamic joint decisions: replenishment quantity, retail price and depletion time, in a vertically decentralized single-retailer and single-supplier supply chain over a dynamic multi-period planning horizon, subject to multivariate demand function and deteriorating goods with shortages allowed and with no consideration of fixed costs. This research us...

We examine transshipment incentives in a decentralized supply chain where a monopolist distributes a product through independent retailers. A key insight is that the transshipment price determines whether the firms benefit from, or are hurt by, transshipment. In particular, we show that the manufacturer prefers to set the transshipment price as high as possible, while retailers prefer a lower t...

The optimal pricing and remanufacturing decisions problem of a fuzzy closed-loop supply chain is considered in this paper. Particularly, there is one manufacturer who has incorporated a remanufacturing process for used products into her original production system, so that she can manufacture a new product directly from raw materials or from collected used products. The manufacturer then sells t...

In supply chain management manufacturing flow lines consist of two or more work areas, arranged in series and/or in parallel, with intermediate storage areas. The first work area processes raw items and the last work area produces end items or products, which are stored in a storage area in anticipation of future demand. Firstly managers should analyze and organize the long term production opti...