Research on supply chain coordination with the consideration of pricing and transportation cost

This paper considers how to design coordination strategies to achieve the coordination in decentralized supply chain, considering pricing, inventory and transportation cost simultaneously under the price sensitive environment. Based on a supplier-Stackelberg game structure, we analyze the non-cooperation decision model and design the algorithm. Then we propose the cooperation decision model and design the algorithm. Revenue sharing and price discount strategies are used to coordinate the decentralized supply chain. The experimental results show that both revenue sharing and price discount strategy can efficiently make the coordination of the supplier and the retailer.