Price And Production Desisions Of Dual Channel Supply Chain With Retalier Incentive Under Demand Disruption

This paper studies the price and production decision-making of a two-cycle twochannel supply chain consisting of a manufacturer and a retailer.Before realizing the demand in the first cycle,a production quantity is determined first.In the second cycle,the optimal price,optimal production quantity and maximum profit are further determined based on the production quantity and realized demand in the first cycle,and the production plan is realized.In this paper,we discuss the optimal decision-making and maximum profit through the optimal price model of two-cycle dual-channel supply chain.For two-cycle dual-channel supply chain without interruption,we aim at maximizing profit and obtain the optimal price,optimal production volume and maximum profit of centralized and decentralized systems respectively.For two-cycle dual-channel supply chain with interruption of demand,Taking profit maximization as the goal,we study how to adjust price and output under the assumption that the manufacturer bears the deviation cost caused by interruption.We obtain the optimal price,optimal production and maximum profit of centralized and decentralized systems respectively under interruption.We make an empirical study through numerical examples.The numerical examples show that both centralized and decentralized systems are centralized.In a distributed system,the optimal production capacity is robust under demand interruption.