Proceedings of the 2007 International Conference on Intelligent Systems and Knowledge Engineering (ISKE 2007)

On the Performance of Push and Pull Models with the Price-Sensitive Demand

Authors
Xiaohong Zhang1, Jihong Ou
1Department of Management Science, School of Politics and Public Administration, Soochow University, Suzhou 215006 P.R.C.
Corresponding Author
Xiaohong Zhang
Available Online October 2007.
DOI
10.2991/iske.2007.235How to use a DOI?
Keywords
Supply chain; independent retailer; push model
Abstract

In this paper we study the push model and pull model of supply chain with a price-sensitive demand, in which a supplier sells a single product to an independent retailer facing stochastic demand while the retailer price is endogenously determined by the retailer, and compare the performance of supply chain between these two different models. We prove that for the multiplicative form of end-customer demand, at optimality, the wholesale price, order quantity and the retail price in pull model are greater than in push model, respectively. We further demonstrate that there is an interesting contrast: the supplier obtains greater profit in pull models than in push model, but the retailer obtains less profit in push model than in push model.

Copyright
© 2007, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Download article (PDF)

Volume Title
Proceedings of the 2007 International Conference on Intelligent Systems and Knowledge Engineering (ISKE 2007)
Series
Advances in Intelligent Systems Research
Publication Date
October 2007
ISBN
978-90-78677-04-8
ISSN
1951-6851
DOI
10.2991/iske.2007.235How to use a DOI?
Copyright
© 2007, the Authors. Published by Atlantis Press.
Open Access
This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

Cite this article

TY  - CONF
AU  - Xiaohong Zhang
AU  - Jihong Ou
PY  - 2007/10
DA  - 2007/10
TI  - On the Performance of Push and Pull Models with the Price-Sensitive Demand
BT  - Proceedings of the 2007 International Conference on Intelligent Systems and Knowledge Engineering (ISKE 2007)
PB  - Atlantis Press
SP  - 1387
EP  - 1394
SN  - 1951-6851
UR  - https://doi.org/10.2991/iske.2007.235
DO  - 10.2991/iske.2007.235
ID  - Zhang2007/10
ER  -