Strategic Consumer Behavior and Price Guarantees in Supply Chain Coordination
A supply chain consisting of one manufacture,one seller,and a group of consumers with strategic behavior is considered in the paper.The retailer proclaims to implement price guarantee policy before selling.The selling season is divided into two periods,which are the regular period and the salvage period.If the consumer purchases in the regular period,he can claim the price difference in the salvage period.Strategic consumers must decide whether buy now or later.Combined contract of wholesale price and markdown money is implemented between the manufacturer and the retailer.The manufacturer offers the retailer compensation for the leftover after the selling reason.Results indicate that strategic consumer behavior reduces the profit of supply chain and price guarantees policy alleviate the strategic consumers' waiting behavior rather than eliminating it.In addition,with the existence of strategic consumers,combined contract of wholesale price and markdown money can partly increase the profit of retailer and lessen the adverse effect caused by strategic consumers' waiting behavior.