TY - GEN
T1 - A Multi-retail Bi-level Supply Chain Game Based on Nested and Iterative Heuristic Algorithm
AU - Lei, Kunlun
AU - Li, Donghe
AU - Yang, Qingyu
AU - Song, Pengtao
N1 - Publisher Copyright:
© 2023 IEEE.
PY - 2023
Y1 - 2023
N2 - The bi-level game problem in supply chain management has been extensively studied by scholars and practitioners. However, there is a gap when it comes to combining pricing decisions and inventory management problems within the bi-level game. To address this challenge, a supply chain scheme is proposed to balance the trade-off between manufacturers and retailers, where a joint price and inventory management game is played. Specifically, the manufacturer, as the leader, maximizes its profit by determining the wholesale price, while the retailers, as followers, maximize their profits through pricing and inventory management. Then, two heuristic algorithms are designed to solve this bi-level optimization model. Both algorithms incorporate an improved threshold acceptance strategy, which can highly improve convergence accuracy and speed. Finally, a numerical simulation is performed to demonstrate the effectiveness of the supply chain for market coordination.
AB - The bi-level game problem in supply chain management has been extensively studied by scholars and practitioners. However, there is a gap when it comes to combining pricing decisions and inventory management problems within the bi-level game. To address this challenge, a supply chain scheme is proposed to balance the trade-off between manufacturers and retailers, where a joint price and inventory management game is played. Specifically, the manufacturer, as the leader, maximizes its profit by determining the wholesale price, while the retailers, as followers, maximize their profits through pricing and inventory management. Then, two heuristic algorithms are designed to solve this bi-level optimization model. Both algorithms incorporate an improved threshold acceptance strategy, which can highly improve convergence accuracy and speed. Finally, a numerical simulation is performed to demonstrate the effectiveness of the supply chain for market coordination.
KW - game theory
KW - inventory management
KW - joint pricing
KW - supply chain
KW - threshold accepting algorithm
UR - https://www.scopus.com/pages/publications/85185590412
U2 - 10.1109/YAC59482.2023.10401594
DO - 10.1109/YAC59482.2023.10401594
M3 - 会议稿件
AN - SCOPUS:85185590412
T3 - Proceedings - 2023 38th Youth Academic Annual Conference of Chinese Association of Automation, YAC 2023
SP - 1258
EP - 1263
BT - Proceedings - 2023 38th Youth Academic Annual Conference of Chinese Association of Automation, YAC 2023
PB - Institute of Electrical and Electronics Engineers Inc.
T2 - 38th Youth Academic Annual Conference of Chinese Association of Automation, YAC 2023
Y2 - 27 August 2023 through 29 August 2023
ER -