Tang Shu-yi

Work place: School of Management, University of Science and Technology of China, Hefei, People’s Republic of China

E-mail: tangsy@ustc.edu.cn


Research Interests: Information Systems, Database Management System


Shuyi Tang was born in Chaohu, Anhui Province, China, in August 1962. He received his Master’s degree in Management Engineering from Hefei University of Technology in 1988. Currently, he is an Associate Professor of the University of Science and Technology of China (USTC, Hefei, China) and the Vice Chairman of the EMBA (Executive Master of Business Administration) center of USTC. He has edited three Chinese books, he has also assisted in editing several other books with a maximum of 600,000 words in total. He has published more than 10 papers and participated in 3 projects. He was listed among the Young and Middle-aged Backbone Teachers at the Provincial Level by Anhui Province Education Department and was twice-rated as an outstanding teacher at Hefei Economic and Technological Academy. His current research interest is in management information systems.

Author Articles
Manufacturer's Pricing Strategy for Supply Chain with Service Level-Dependent Demand

By Cheng Qin Tang Shu-yi

DOI: https://doi.org/10.5815/ijem.2014.04.01, Pub. Date: 22 Dec. 2014

This article considers the pricing strategies of a manufacturer in a two-echelon supply chain with service level-dependent demand. This chain consists of one manufacturer and two retailers. The manufacturer decides the wholesale prices as a Stackelberg leader, and the retailers determine their service levels as the Stackelberg followers. We discuss the segmented and unified pricing strategies of the manufacturer. We also compute the optimal service levels and profits of the retailers, as well as the optimal wholesale prices and profits of the manufacturer associated with different pricing strategies. We conclude that the segmented pricing strategy benefits the manufacturer, whereas it cannot benefit the two retailers simultaneously. Furthermore, it is disadvantageous to the profit of the entire supply chain. Moreover, the increase in service cost coefficient adversely affects the earnings of the customers, the retailers, the manufacturer, and the entire supply chain. However, an increase in diffusion intensity benefits the customers, the manufacturer, and the supply chain.

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