Retailer Pricing And Ordering Policy Based On Consumer Strategic Behavior

With the gradual growth of domestic enterprises, supply chain management is gaining more attention. People started to pay attention to the way of improving the profits of supply chain and its nodes. Predecessors studied in many aspects of in-depth research, especially in inventory and pricing, which has played a positive role on the effective management of the supply chain. In recent years, retailers use sales promotion activities in order to obtain more profits. Consumers’learning ability continues to improve, and people begin to notice more strategic consumer wait behavior. with the changing of selling tools, it was noted that there are more consumers waiting behavior, in order to obtain the maximum consumer surplus. Many scholars began to study the strategic behavior of consumers, and have achieved certain results. Previous studies were mainly based on one-supplier-one-retailer structure. There was few study about consumers strategic behavior based on one-supplier-two-retailer structure. In centralized decision-making model, it depends on the size of the wholesale price whether the impact of neglecting consumer behavior is negative or not.We do a further research of the impact of strategic behavior of consumers on the supply chain based on previous studies in this thesis. We study the influence of strategic consumers on pricing strategy, ordering strategy and supply chain’s profit in one-supplier-one-retailer supply chain. We comparatively analyze the pricing, order quantities and profits in cases of decentralized and centralized decision-making model. Centralized supply chain is superior to decentralized supply chain when the cost is small while decentralized supply chain is better than a centralized supply chain. We also discuss the impact of ignoring the strategic behavior.We then study the influence of strategic consumers on pricing strategy, ordering strategy and supply chain’s profit in one-supplier-two-retailer supply chain. We comparatively analyze the pricing, order quantities and profits in cases of decentralized and centralized decision-making model. The supply chain profit in decentralized decision-making model is more than the case of centralized decision-making model when the price is low, while the supply chain profit in decentralized decision-making model is less than the case of centralized decision-making model when the price is high.