Contract design in a supply chain considering price and quality dependent demand with customer segmentation.pdf
Creators: name: Seifbarghy, Mehdi
name: Nouhi, Khashayar
name: Mahmoudi, Amin
Publisher: name: figshare
Year: 2020
Subjects: subject: 90603 Industrial Electronics
subject: FOS: Electrical engineering, electronic engineering, information engineering
subject: FOS: Electrical engineering, electronic engineering, information engineering
subject: 90505 Infrastructure Engineering and Asset Management
subject: FOS: Civil engineering
subject: FOS: Civil engineering
subject: 91599 Interdisciplinary Engineering not elsewhere classified
subject: FOS: Other engineering and technologies
subject: FOS: Other engineering and technologies
subject: 91003 Machine Tools
subject: 91004 Machining
subject: 91099 Manufacturing Engineering not elsewhere classified
subject: 91005 Manufacturing Management
subject: 91006 Manufacturing Processes and Technologies (excl. Textiles)
subject: 91007 Manufacturing Robotics and Mechatronics (excl. Automotive Mechatronics)
subject: 91008 Manufacturing Safety and Quality
subject: 91101 Marine Engineering
subject: FOS: Environmental engineering
subject: FOS: Environmental engineering
subject: 91199 Maritime Engineering not elsewhere classified
subject: 91299 Materials Engineering not elsewhere classified
subject: FOS: Materials engineering
subject: FOS: Materials engineering
subject: Mechanical Engineering
subject: FOS: Mechanical engineering
subject: FOS: Mechanical engineering
subject: 91399 Mechanical Engineering not elsewhere classified
subject: 90304 Medical Devices
subject: FOS: Medical engineering
subject: FOS: Medical engineering
subject: 90404 Membrane and Separation Technologies
subject: FOS: Chemical engineering
subject: FOS: Chemical engineering
subject: 91207 Metals and Alloy Materials
subject: 91306 Microelectromechanical Systems (MEMS)
subject: 90604 Microelectronics and Integrated Circuits
subject: 91009 Microtechnology
subject: 91404 Mineral Processing/Beneficiation
subject: 91405 Mining Engineering
subject: 91102 Naval Architecture
subject: 90904 Navigation and Position Fixing
subject: 90405 Non-automotive Combustion and Fuel Engineering (incl. Alternative/Renewable Fuels)
subject: Nuclear Engineering
subject: 91506 Nuclear Engineering (incl. Fuel Enrichment and Waste Processing and Storage)

description: We consider a two-level supply chain consisting of a manufacturer and a retailer. The retailer gives a final product to a competitive market with customer sensitive to price. The customer demand is assumed to be constant depending on the price and quality degree of the final product. The manufacturer decides on the quality degree of the product. The optimal values of the major decision variables of the chain are determined for different conditions. The supply chain in centralized condition is considered and the optimal values of the price and the quality degree are found. Chain profit in decentralized condition is optimized and the optimal values of wholesale price and quality degree are determined. Retailers revenue sharing contract is designed and the optimal values of wholesale price and quality degree are found. Finally, a market segmentation condition in which customers are divided into two categories of quality oriented and price oriented is considered; then, the threshold of the percentage of potential quality oriented customers is determined. A set of numerical examples are designed in order to analyze the optimal values of the decision variables. <br>