| In this study we developed a supply chain contract model for multiple scheduling period with dynamic demand patterns of stochastic nature, and with elastic price structures. The model presented here combined and enhanced several supply chain contract models developed previously. It is unique in that it considered multiple periods, dynamic, stochastic and price-elastic demand patterns, and flexible order quantities. Using a linear demand price-elastic relation and normal distribution pattern, optimal solutions for minimum cost, maximum profit, price structure, and order policies for the entire supply chain were derived. Sensitivity analyses performed in this study gave a better understanding of relative importance of various system variables. |
