Coordinated strategies of supply chain with competing retailers under price sensitivity disruption
A study was conducted on the response strategies of a supply chain with two competing retailers when experiencing price sensitivity disruptions.Based on Stackelberg game theory,a supply chain disruption model was constructed when retailers competed.The research results indicate that when price sensitivity changes are not significant,the optimal response of the supply chain can be achieved by adjusting the retail price of the product and horizontally adjusting the supply volume of retailers;When there is a significant change in price sensitivity,it is necessary to adjust the production plan simultaneously.At the same time,Groves wholesale price contracts were designed to achieve coordinated response in decentralized supply chains.Numerical examples show that the strategy is effective,and they indicate that the supplier,as the coordinator,has the motivation to adopt this strategy.In addition,when production costs are variable,the substitution of products cannot be ignored,especially when price sensitivity decreases,which is of great significance for expanding market share.