146 / 2017-07-10 22:25:34

Research on Supply Chain with Unidirectional Transshipment

Transshipment; Nash Equilibrium; Transshipment Price; Wholesale Price

In our model, manufacture has an offline experience store and a warehouse, and also offers products to another retailer. To reduce inventory risk, unidirectional transshipment is allowed after demands are realized. We study supply chain actors’ order decisions and then prove the existence of a unique Nash equilibrium. And we find that transshipment improves supply chain actors’ profitability over the case where transshipment is not permitted. Transshipment price and wholesale price also have effects on supply chain actors’ profits, inventory orders and transshipment amount.