Pricing strategy of multi-channel supply chain with retailer's capital constraint

A pricing strategy of multi-channels supply chain model was studied with many retailers and capital constraint. According to the difference of retailer's capital condition, the relationship between supply chain upstream and downstream was analyzed by using the Stackelberg and Bertrand game theory. The pricing decision-making strategies of the manufacturer and the retailers were given, and the supply chain member's performances were analyzed under the different pricing decision-making strategies. The results showed that the manufacturer can get the highest profit and the retailer can get a lower profit under sufficient funds condition. Comparing with the loan-payment strategy, the manufacturer and the retailers can both gain more profit by the deferred-payment strategy under insufficient funds condition. The deferred-payment strategy is the best decision-making for the supply chain channel under capital constraint. ©, 2015, Northeastern University. All right reserved.