Multi-Period Multi-Retailer Supply Chain Models with Wholesale Price Coordination Experiment

This research considers a two-stage supply chain that consists of a single manufacturer and multiple retailers in centralized and decentralized supply chain structure. The mathematical models are developed to find the minimum total cost of a supply chain in multiple time periods for the centralized and decentralized model. The effect of the wholesale price is discussed in two different strategies: (i) Every Day Low Price (EDLP) and (ii) wholesale price discount strategy. The numerical analysis shows that EDLP strategy does not provide the improvement to the supply chain's efficiency whilst the wholesale price discount strategy can improve the supply chain performance. With the wholesale price discount strategy, retailers change their decision to make the order in the discount periods thus the manufacturer and retailers obtain higher profit.