An Uncertain Supply Chain Problem with Sales Effort
Lengceng Gao and Jiayu Shen
Department of Public Basic Courses, Nanjing Institute of Industry Technology
1 North Yangshan Road, Qixia District, Nanjing, Jiangsu 210023, China
This paper considers a two-echelon supply chain problem that includes a manufacturer and a retailer. The manufacturer plays a leading role in the supply chain and must make efforts to increase sales. Due to many uncertain factors in business, the market demand, manufacturing costs and retail operating costs are assumed to be uncertain variables. Expected and chance-constrained models are developed to address these uncertain variables. Stackelberg game is used to solve the proposed models. The equilibrium optimal wholesale price and unit margin are provided in order to determine the maximum profit. Finally, numerical examples are presented to demonstrate the effectiveness of the proposed models.
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