Pricing decision models analysis in a manufacturer-retailer supply chain (ID: 6-042)

This paper focuses on the problem of pricing decision of the manufacturer-retailer supply chain with manufacturer as a. leader. Firstly, basic pricing decision model is developed. Secondly, models are developed and analyzed including non-cooperative pricing model, completely cooperative pricing model and incompletely cooperative pricing model. Finally, coordination mechanisms for cooperative pricing are given, the conclusion is deduced that, both the profits of the manufacturer and the gross profits of the manufacturer-retailer increase as the cooperative modes changing from distributing, incomplete cooperation, complete cooperation to direct distribution, while the profits of the retailer decrease as the cooperative modes changing from distribution, incomplete cooperation, complete cooperation to direct distribution.