Retailers Competition when Facing a Market Environment Shock

• Main Authors: Kai-huei Liao, 廖凱慧
• Other Authors: Fu-Shiang Tseng
• Format: Others
• Language: en_US
• Published: 2010
• Online Access: http://ndltd.ncl.edu.tw/handle/44169323166390196481

碩士 === 國立中央大學 === 工業管理研究所 === 98 === In modern supply chain management, most of retailers sell the same products which get from one supplier. The power of every retailer is different, so one’s degree of substitutability differs form each other. If the manager wants to make his profit maximize, he must consider the competitor’s price first. On the contrary, the competitor also is. When the customers demand of market changes, they have to decide new selling price and ordering quantity. Similarly, both sides begin to price competition to protect each profit. Hence, this paper provides a model to discuss the optimal pricing and ordering quantity under a duopoly market. This paper adopts a general of linear demand function to analyze two retailers’ prices and quantities before and after the demand environment shock. We would like provide an example to illustrate some observations. Furthermore, we present how the parameters affect the decision making on prices and quantities. We discuss the interaction of the parameters make what kinds of influence on two retailers at the end.