Operations and Supply Chain Management Commons^™

Pricing And Lead Time Decisions In A Duopoly Common Retailer Channel, Xiuming Niu

Dissertations and Theses Collection (Open Access)

This thesis studies a dual-level decentralized supply chain consisting of two suppliers and two retailers facing a price- and lead-time-sensitive demand. We model the suppliers’ operations as M/M/1 queues and demand as a linear function of the retail prices and promised delivery lead-times offered to the customers. Three different kinds of games are constructed to analyze the pricing and lead-time decisions of the suppliers and retailers. We show the existence of a unique equilibrium in all games and provide the exact formulas to compute the optimal decisions for both the suppliers and retailers. We further present numerical examples to illustrate …