Shiv Kumar Singh Pundhir, Jitendra Kaushik, Anand Kumar Gupta and Sandeep Kumar

DOI: 10.14456/sjst-psu.2022.133

pp. 1008 - 1017

Abstract

In supply chain management manufacturers and retailers are the two most important nodes. Some decision variables are
decided by the manufacturer and some are decided by the retailer to maximize their profits. In this work, market demand is
considered sensitive to market price, advertising, and discount given by the manufacturer to the retailer. In this work, EOQ and
advertising will be decided by the retailer and a discount will be given by the manufacturer to the retailer to motivate the retailer
to generate more market demand. Manufacturers' and retailers' profit models are developed in the non-co-operative environment.
Models are verified using dummy data, and sensitivity analysis is performed for all the decision variables for both manufacture and
retailer Stackelberg models.

Keywords

• manufacturer
• retailer
• discount
• advertisement cost
• stackelberg models