Examining price and service competition among retailers in a supply chain under potential demand disruption

Syed Mithun Ali, Md Hafizur Rahman, Tasmia Jannat Tumpa, Abid Ali Moghul Rifat, Sanjoy Kumar Paul

Research output: Contribution to journalArticle

Abstract

Supply chain disruptions management has attracted significant attention among researchers and practitioners. The paper aims to examine the effect of potential market demand disruptions on price and service level for competing retailers. To investigate the effect of potential demand disruptions, we consider both a centralized and a decentralized supply chain structure. To analyze the decentralized supply chain, the Manufacturing Stackelberg (MS) game theoretical approach was undertaken. The analytical results were tested using several numerical analyses. It was shown that price and service level investment decisions are significantly influenced by demand disruptions to retail markets. For example, decentralized decision makers tend to lower wholesale and retail prices under potential demand disruptions, whereas a proactive retailer needs to increase service level with an increased level of possible disruptions. This research may aid managers to analyze disruptions prone market and to make appropriate decision for price and service level. The manufacturer or the retailers will also be able to better determine when to close a market based on the proposed analysis by considering anticipated disruptions. The benefits and usefulness of the proposed approach are explained through a real-life case adopted from a toy supply chain in Bangladesh.

LanguageEnglish (US)
Pages40-47
Number of pages8
JournalJournal of Retailing and Consumer Services
Volume40
DOIs
StatePublished - Jan 1 2018
Externally publishedYes

Fingerprint

Disruption
Retailers
Supply chain
Service levels
Price level
Decentralized supply chain
Manufacturing
Toys
Investment decision
Disruption management
Bangladesh
Decision maker
Wholesale prices
Stackelberg game
Usefulness
Retail market
Supply chain disruptions
Retail prices
Market demand
Managers

Keywords

  • Disruption management
  • Price competition
  • Service competition, demand disruptions, supply chain risk

ASJC Scopus subject areas

  • Marketing

Cite this

Examining price and service competition among retailers in a supply chain under potential demand disruption. / Ali, Syed Mithun; Rahman, Md Hafizur; Tumpa, Tasmia Jannat; Moghul Rifat, Abid Ali; Paul, Sanjoy Kumar.

In: Journal of Retailing and Consumer Services, Vol. 40, 01.01.2018, p. 40-47.

Research output: Contribution to journalArticle

Ali, Syed Mithun ; Rahman, Md Hafizur ; Tumpa, Tasmia Jannat ; Moghul Rifat, Abid Ali ; Paul, Sanjoy Kumar. / Examining price and service competition among retailers in a supply chain under potential demand disruption. In: Journal of Retailing and Consumer Services. 2018 ; Vol. 40. pp. 40-47
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