Cooperation in Supply Chain Pricing Maximizes Profits and Benefits Customers
Dynamic pricing and cooperation in a perishable product supply chain can help reduce waste. By using price markdowns and dividing the selling period, the chain members can manage quality-dependent demand. Results show that cooperation leads to maximum profits and lower selling prices, benefiting both members and customers. In Stackelberg games, the manufacturer-led scenario results in higher profits for both members, while the retailer-led scenario offers lower prices and greater discounts for customers.