Profit improvement through retailer-Stackelberg in a multi-echelon supply chain of deteriorating product with price-sensitive demand.

In this paper, an attempt is made to improve profit through a retailer-Stackelberg game in a multi-echelon supply chain involving one supplier, one manufacturer, and one retailer having deterministic price-sensitive demand. Inventory in each echelon is subject to deterioration. We assume that the supplier and the manufacturer follow a multi-shipment policy to deliver to the manufacturer and the retailer, respectively. The proposed model is developed first under centralized decision policy which is the benchmark case. Then the decentralized model is developed and profit improvement is done through a retailer-Stackelberg game. The optimal results are demonstrated and a sensitivity analysis is performed for a numerical data-set. [ABSTRACT FROM AUTHOR]