Price Policy of Supply Chain Based on Power Structure Analysis in Competitive Environment

This paper analyzes price competition between two supply chains composed by manufacturer and retailer in comparison of existing different products and compares price policy and profit in four different power structures. It includes manufacturer as Stackelberg leader, retailer as Stackerberg leader, decentralized decision and integrated control by manufacturer. It shows that price competition is most dramatic in centralized supply chain, while manufacturer as Stackelberg leader can relax. Besides, it proves that power structures have great influence on manufacturer's profit. When manufacturer is Stackelberg leader, he can get most of the profit, so manufacturer's profit is highest. On the contrary, when manufacturer is Stackelberg follower, retailer can get most profit, so manufacturer's profit is lowest in four power structures.