Abstract:
In this paper, numerous manufacturer-retailer supply chain models are anticipated
which incorporate equally cost factors as well as elements of competition and
cooperation between manufacturer and retailer. We assume that unit marketing
expenditure and unit price charged by the retailer manipulate the demand of the
product being sold. The dealings between manufacturer and retailer will be modeled
by non-cooperative and cooperative games, correspondingly. The non-cooperative
game is based on the Stackelberg strategy solution perception, where we reflect on
separately the case when the manufacturer is the principal (Manufacturer-Stackelberg)
and as well when the retailer is the principal (Retailer -Stackelberg). Pareto efficient
solutions will be provided for the cooperative game model.
