Manufacturer’s R&D Investment Strategy and Pricing Decisions in a Decentralized Supply Chain
Joint Authors
Source
Discrete Dynamics in Nature and Society
Issue
Vol. 2017, Issue 2017 (31 Dec. 2017), pp.1-10, 10 p.
Publisher
Hindawi Publishing Corporation
Publication Date
2017-01-18
Country of Publication
Egypt
No. of Pages
10
Main Subjects
Abstract EN
Consider that a manufacturer Stackelberg supply chain consists of an upstream supplier and a downstream manufacturer.
The manufacturer purchases a component from the supplier and then transforms it into a final product which is sold in a price and quality sensitive market.
The manufacturer considers to make R&D investment to improve the product quality and reduce the production cost.
We first investigate and derive the optimal investment strategy and pricing decisions by establishing a three-stage game model.
We show that the optimal investment strategy and pricing decisions in the decentralized model may deviate from those in the centralized model.
We then propose a mechanism to coordinate the decentralized supply chain, by introducing a profit sharing policy, a production cost sharing policy, and an investment cost sharing policy.
Finally, we show that both the supplier and the manufacturer can benefit from participating in the proposed coordination mechanism.
American Psychological Association (APA)
Zhang, Hengyun& Hong, Dingjun. 2017. Manufacturer’s R&D Investment Strategy and Pricing Decisions in a Decentralized Supply Chain. Discrete Dynamics in Nature and Society،Vol. 2017, no. 2017, pp.1-10.
https://search.emarefa.net/detail/BIM-1152046
Modern Language Association (MLA)
Zhang, Hengyun& Hong, Dingjun. Manufacturer’s R&D Investment Strategy and Pricing Decisions in a Decentralized Supply Chain. Discrete Dynamics in Nature and Society No. 2017 (2017), pp.1-10.
https://search.emarefa.net/detail/BIM-1152046
American Medical Association (AMA)
Zhang, Hengyun& Hong, Dingjun. Manufacturer’s R&D Investment Strategy and Pricing Decisions in a Decentralized Supply Chain. Discrete Dynamics in Nature and Society. 2017. Vol. 2017, no. 2017, pp.1-10.
https://search.emarefa.net/detail/BIM-1152046
Data Type
Journal Articles
Language
English
Notes
Includes bibliographical references
Record ID
BIM-1152046