Optimal Ordering and Disposing Policies in the Presence of an Overconfident Retailer: A Stackelberg Game
Joint Authors
Zhigang, Wang
Zhang, Zhenchao
Li, Chunfa
You, Chang
Xu, Lei
Source
Mathematical Problems in Engineering
Issue
Vol. 2015, Issue 2015 (31 Dec. 2015), pp.1-12, 12 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2015-01-22
Country of Publication
Egypt
No. of Pages
12
Main Subjects
Abstract EN
This paper investigates the impact of the retailer’s overconfident behavior on supply chain performance.
We start with a basic model on the rational newsvendor model and investigate the retailer’s optimal ordering decision and expected profit.
Next, we extend the basic model and introduce an overconfident retailer.
We find that the retailer’s overconfident behavior does not necessarily damage the supply chain compared with the basic model when the overconfident level does not exceed a threshold.
We also design the cooperation and buyback mechanism and conduct numerical analysis to compare the manufacturer’s and retailer’s expected profits and real profits with those in the basic newsvendor model.
It can achieve Pareto improvement in the supply chain when the overconfident level is low.
When the retailer’s overconfident level exceeds a threshold, the retailer’s ordering decision cannot make the whole supply chain sustainable development.
American Psychological Association (APA)
Zhigang, Wang& Zhang, Zhenchao& Li, Chunfa& Xu, Lei& You, Chang. 2015. Optimal Ordering and Disposing Policies in the Presence of an Overconfident Retailer: A Stackelberg Game. Mathematical Problems in Engineering،Vol. 2015, no. 2015, pp.1-12.
https://search.emarefa.net/detail/BIM-1073687
Modern Language Association (MLA)
Zhigang, Wang…[et al.]. Optimal Ordering and Disposing Policies in the Presence of an Overconfident Retailer: A Stackelberg Game. Mathematical Problems in Engineering No. 2015 (2015), pp.1-12.
https://search.emarefa.net/detail/BIM-1073687
American Medical Association (AMA)
Zhigang, Wang& Zhang, Zhenchao& Li, Chunfa& Xu, Lei& You, Chang. Optimal Ordering and Disposing Policies in the Presence of an Overconfident Retailer: A Stackelberg Game. Mathematical Problems in Engineering. 2015. Vol. 2015, no. 2015, pp.1-12.
https://search.emarefa.net/detail/BIM-1073687
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1073687