From: Pricing Decision in a Two-Echelon Supply Chain with Competing Retailers Under Uncertain Environment
\(\tilde {c}:\) | Unit manufacturing cost, an uncertain variable |
\(\tilde {s}_{i}:\) | Unit sales cost of retailer i, an uncertain variable |
w _{ i }: | Unit wholesale price to retailer i, the manufacturer’s decision variable |
r _{ i }: | Unit markup price of retailer i, the retailer’s decision variable |
p _{ i }: | Unit retail price of retailer i, where p _{ i }=w _{ i }+r _{ i } |
\(\tilde {d}_{i}:\) | The market base of retailer i, an uncertain variable |
π _{ m }: | The profit of the manufacturer: \(\pi _{m}=\sum _{i=1}^{2}(w_{i}-\tilde {c})(\tilde {d}_{i}-\tilde {\beta } p_{i}+\tilde {\gamma } p_{3-i})\) |
\(\pi _{r_{i}}\): | The profit of retailer i: \(\pi _{r_{i}}=(r_{i}-\tilde {s}_{i})(\tilde {d}_{i}-\tilde {\beta } p_{i}+\tilde {\gamma } p_{3-i})\) |