Supply chain pricing strategies for advance selling with a deposit

Accepted by: Konstantinos Nikolopoulos This research studies the pricing strategy of a supply chain with a manufacturer and a retailer. We analyze the customers’ purchase behaviour in advance selling with deposit by using utility theory and obtain the pricing decision of the supply chain by using th...

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Bibliographic Details
Published in:IMA journal of management mathematics 2023-05
Main Authors: Lyu, Qi, Wu, Shuang, Li, Bo, Zhang, Yawen
Format: Article
Language:English
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Summary:Accepted by: Konstantinos Nikolopoulos This research studies the pricing strategy of a supply chain with a manufacturer and a retailer. We analyze the customers’ purchase behaviour in advance selling with deposit by using utility theory and obtain the pricing decision of the supply chain by using the Stackelberg model. We find that when consumers are not sensitive to the distribution lead time, the retailer’s advance selling strategy could Pareto improve the whole supply chain. Better informed consumers and moderate advance selling distribution lead time information could expand the retailer’s pre-sale possibilities by enlarging the feasible range of advance selling.
ISSN:1471-678X
1471-6798
DOI:10.1093/imaman/dpad008