Groupe d’études et de recherche en analyse des décisions

Pricing and order quantity for semi-seasonal goods in the seller-buyer supply chain

Nadia Rasouli Tarbiat Modares University, Iran

In this paper, the coordination model of pricing and order quantity for semi-seasonal products in a seller-buyer supply chain is developed. The supply chain is comprised of one seller and one buyer in which the seller is leader and the model is a non-cooperative Stackelberg game.

Semi-seasonal goods are introduced for the first time in this paper. The demands of these products are both seasonal and non-seasonal depending on the time of sale, like heating and cooling systems. First, we develop the mathematical model and then it is proved that the objective functions are concave, and an exact algorithm is proposed to solve the model. Finally, in order to analyze the behavior of the model, a numerical example accompanied by sensitivity analyses of the key parameters are carried out. Results show that the substitution coefficients of the buyer have a significant effect on the profit of supply chain members.


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