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

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/).

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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  -