Making Optimal Decisions of Assembly Products in Supply Chain
Subject Areas : Design of Experiment
1 - Assistant Professor, School of Electrical Engineering, Zhengzhou University, Zhengzhou 400051, China
2 - Assistant Professor, College of Information Technical Science, Nankai University, Tianjin 300071, China
Keywords: Supply chain management, Game theory, Nash Equilibrium, Assembly products,
Abstract :
The strategic pricing decisions of assembly products in assembly products supply chain are studied in this paper. Firstly, a two-stage assembly products supply chain model is developed. By building Nash game model, the Nash equilibrium solution of pricing strategy of supplier and assemblers is obtained. Next, a union decision model is built to analyze the optimal combination pricing strategy of assembly products, and the relationship between the optimal strategies is established. The law of the changing in combination pricing strategy, assemblers’ profits and supplier’s profit along with the variety of some characteristics has been investigated by using numerical simulation. The results are consistent with economics principles.