%0 Journal Article
%T Research on Decentralized Supply Chain with Channel-Wide Profit Maximization
%J -
%D 2017
%X This study explores the problem of optimally dynamic joint decisions: replenishment quantity, retail price and depletion time, in a vertically decentralized single-retailer and single-supplier supply chain over a dynamic multi-period planning horizon, subject to multivariate demand function and deteriorating goods with shortages allowed and with no consideration of fixed costs. This research uses a calculus-based formulation coupled with dynamic programming techniques to solve the channel-wide profit maximization under price-only contract and consignment contract respectively. The analysis reveals that the consignment contract can significantly achieve higher channel-wide profit than the price-only contract for the dynamic decentralized channel.
%K Decentralized Supply Chain
%K Dynamic Pricing
%K Shortages
%K Fixed Costs
%U http://www.sciencepublishinggroup.com/journal/paperinfo?journalid=175&doi=10.11648/j.sjbm.20170504.11