Stackelberg pricing policy in dyadic capital-constrained supply chain considering bank's deposit and loan based on delay payment scheme

Bing-Bing Cao; Zai-Jing Gong; Tian-Hui You

doi:10.3934/jimo.2020098

Article Contents

2021, Volume 17, Issue 5: 2855-2887. Doi: 10.3934/jimo.2020098

This issue Previous Article A dual-channel supply chain problem with resource-utilization penalty: Who can benefit from sales effort? Next Article Application of a modified VES production function model

Stackelberg pricing policy in dyadic capital-constrained supply chain considering bank's deposit and loan based on delay payment scheme

1.
School of Management, Guangzhou University, Guangzhou 510006, China
2.
Department of Information Management and Decision Sciences, School of Business Administration, Northeastern University, Shenyang 110169, China

^* Corresponding author: TIAN-HUI YOU
^* Corresponding author: TIAN-HUI YOU

Received: September 30, 2019

Revised: February 28, 2019

Early access: May 2020

Published: September 2021

The authors are supported by the National Natural Science Foundation of China (Project Nos. 71901075 and 71972059), the Science Foundation of Ministry of Education of China (Project No. 19XJCZH278) and the Philosophy and Social Science Foundation of Guangdong Province (Project No. GD19YGL08)

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Abstract

In reality, supply chain member may apply for loan from bank when he$ \backslash $she is capital-constrained, or may deposit idle capital to bank when he$ \backslash $she is well-funded. This study focuses on the Stackelberg pricing policy considering bank's deposit and loan based on delay payment scheme in a dyadic capital-constrained supply chain. First, the market demand is given, and then the profit functions of supply chain members are built. According to Stackelberg game, the four pricing models are constructed for four scenarios. By solving models, optimal pricing policies of supply chain members for each scenario can be determined. Finally, impacts of the interest rate for fixed deposit by installments, deposit rate and loan rate on optimal pricing policies are analyzed. The research results show that, in manufacturer capital-constrained situation, these rates can affect optimal pricing policies and profits; in retailer capital-constrained situation, deposit rate and loan rate have no effect on them, but the interest rate for fixed deposit by installments can still affect them. Our study provides a feasible way for supply chain members in pricing decision considering bank's deposit and loan based on delay payment scheme in a dyadic capital-constrained supply chain, and contributes to the theoretical research on the capital-constrained supply chain management and the management practice for capital-constrained supply chain members with bank' deposit and loan.

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Mathematics Subject Classification: Primary: 90B05, 68W27; Secondary: 68W40.

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Figure 2. The structure and interaction process of supply chain system in manufacturer capital-constrained situation

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Figure 3. The structure and interaction process of supply chain system in retailer capital-constrained situation

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