Pricing Strategy of Supply Chain System Based on Complexity Analysis and Theory of Constraints

Dynamic pricing is crucial to supply chain system survival and development, and it is an important foundation for inter-firm cooperation. The paper introduces the complexity of structure and relationship of supply chain system constructed with the products chain, and introduces the method of searching for the supply chain system constraints by using theory of constraints (TOC) and combined weighted geometric averaging (CWGA) operator. The paper proposes a method of dynamic pricing strategy considering the structure complexity and the relationship complexity of supply chain system. The price of the product of the constraint's link is regarded as the pricing criterion, and the constraints set is regarded as the guide route of pricing in the paper. The feasibility of this strategy is also analyzed through the numerical simulation. These works not only expand the application fields of multi-attributes group decision-making technology, and enhance the reliability of identifying system constraints and pricing criterion, but also can obtain the best performance of supply chain management, and improve the system in the cycle of identifying and eliminating constraints. Keywords: Supply chain management, TOC, Dynamic pricing, Combined weighted geometric averaging