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Factors influencing supply chain members’ profits with cost information sharing. (Chinese. English summary) Zbl 1174.90356

Summary: A two-level supply chain model with one manufacturer upstream and two retailers engaged in Bertrand competition downstream was developed to study the factors influencing supply chain members’ optimal expected profits and the sensitivity to cost information sharing. The results show that for all conditions of retailer cost information sharing, the profits of retailers are directly proportional to the cost variance of the retailers and inversely proportional to the substitution coefficient and correlation coefficient of the products. The manufacturer’s profit is inversely proportional to the product substitution coefficient. With cost information sharing, the manufacturer’s profit is directly proportional to the cost variance of the retailers and the correlation coefficient of the products.

MSC:

90B06 Transportation, logistics and supply chain management
91B44 Economics of information
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