Abstract
This research investigates the optimal pricing strategy for the perishable food supply chain. Using the setting of a two-echelon supply chain including a supplier and a retailer, we apply the game theory approach to derive the equilibriums for both a single pricing strategy and a two-stage pricing strategy. Through a comparison of the equilibriums, we explore how the two pricing strategies affect the supply chain’s decisions and supplier’s and retailer’s performance individually and collectively. The results of the analysis show that the optimal choice of pricing strategy depends on the price markdown cost and its relationship with the two critical thresholds that are determined by a combination of factors including the potential market size, the price and quality sensitivity factors, the initial quality, the unit product cost, and the quality deterioration rate.
| Original language | English |
|---|---|
| Pages (from-to) | 2755-2768 |
| Number of pages | 14 |
| Journal | International Journal of Production Research |
| Volume | 57 |
| Issue number | 9 |
| Early online date | 13 Dec 2018 |
| DOIs | |
| Publication status | Published - 3 May 2019 |
Keywords
- perishable food
- pricing strategy
- supply chain coordination
- supply chain management
Access to Document
- Full-text PDF (accepted author manuscript)
This is the author accepted manuscript (AAM). The final published version (version of record) is available online via Taylor & Francis at https://www.tandfonline.com/doi/full/10.1080/00207543.2018.1557352 . Please refer to any applicable terms of use of the publisher.