Joint Inventory And Pricing Decisions Under Unreliable Supply

Under the wave of economic globalization,the uncertainty of supply is gradually being paid attention to,and the supply mismatch caused by unreliable supply is a hot spot and difficulty in the field of supply chain research.Specially,the uncertainty of the supply of upstream suppliers causes downstream retailers to be unable to supply normally,resulting in the risk of increasing ordering costs,shortage of supply and damage to corporate reputation.On the other hand,joint decision-making of inventory and pricing is an important research content in operations management.Based on this,we aim to maximize profits,and study the joint decision of inventory and pricing under unreliable supply with stochastic price-dependent demand.In this paper,we study the joint decision of inventory and pricing with an unreliable supplier.For the additive and multiplicative stochastic demand situations,we obtain the analytical formula of the optimal order quantity and pricing decisions,and then perform the numerical analysis and discuss the impact of the maximum supply ratio,unit shortage cost and unit salvage value on the joint decision of inventory and pricing.In the face of an unreliable supplier,the retailer is often trapped in a shortage of arrivals due to various influencing factors,thus not being able to meet market demand.In order to achieve the goal of meeting market demand in a stable and timely manner,enhance the core competitiveness of retailers,and reduce the various losses caused by unreliable supply,we further study the joint decision-making of inventory and pricing in the case of dual-source supply.For the additive and multiplication stochastic demand situations,we also obtain the analytical formula of the optimal order quantity and pricing decisions,and the corresponding numerical analysis is carried out.