IJIMT 2015 Vol.6(3): 174-179 ISSN: 2010-0248
DOI: 10.7763/IJIMT.2015.V6.597

Effect of Trade Promotion in Centralized and Decentralized Supply Chain: Wholesale Price Experiment

Phattarasaya Tantiwattanakul and Aussadavut Dumrongsiri
Abstract— This research studies and compares behavior of centralized and decentralized supply chain. A two level supply chain with a single manufacturer supplying a single product to a single retailer is considered. The mathematical models were developed in centralized and decentralized to find the minimum cost in multiple time periods. The effects of demand quantity, parameter, and wholesale price on centralized and decentralized supply chain were explored. The numerical results show how the parameters affect supply chain performance. Moreover, we analyze the effect of trade promotion on decentralized supply chain. From the experiment, we can use trade promotion such as wholesale price discount to reduce the supply chain cost.

Index Terms— Centralized and decentralized supply chain, trade promotion, wholesale price.

The authors are with Sirindhorn International Institute of Technology, Thammasat University, Pathum Thani 12121, Thailand (e-mail: phattarasayat@gmail.com).

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Cite: Phattarasaya Tantiwattanakul and Aussadavut Dumrongsiri, " Effect of Trade Promotion in Centralized and Decentralized Supply Chain: Wholesale Price Experiment," International Journal of Innovation, Management and Technology vol. 6, no. 3, pp. 174-179, 2015.

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