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Research on dynamic pricing of supply chain products based on channel advantages

Zhang Yong (School of Management, University of Electronic Science and Technology of China, Chengdu, China and School of Information Science and Technology, Chengdu University, Chengdu, China)
Lu Yingjin (School of Management, University of Electronic Science and Technology of China, Chengdu, China)
Jiang Xianglan (School of Management, University of Electronic Science and Technology of China, Chengdu, China)

Kybernetes

ISSN: 0368-492X

Article publication date: 12 October 2012

889

Abstract

Purpose

The purpose of this paper is to study the pricing problem of product transfer price under the channel advantages; determine the structure models of optimal transfer price expectation; and compare the differences in pricing of different pricing dominant parties.

Design/methodology/approach

Uncertain factors are introduced into dynamic pricing mathematics models; production and storage models are combined; the method of functional analysis is used to solve transfer pricing question under different advantage conditions; and price matching models in supply chain integration are put forth.

Findings

There is a proportional relationship between the optimal transfer price expectation and price fluctuation. The party which has channel advantages will gain relatively more profit, but the maximum revenue can be obtained only in the supply chain integration.

Research limitations/implications

There is no appropriate empirical data to verify the models.

Practical implications

The paper provides pricing reference method to monopoly competitive enterprises on different stages. The matching pricing models based on E‐commerce can deal with the price deviation caused by goal difference and random factors automatically.

Originality/value

The paper considers production and inventory pricing, reflects the influence of the whole pricing factors under different channel advantages, and puts forth dynamic matching pricing models and algorithm under the E‐commerce circumstances.

Keywords

Citation

Yong, Z., Yingjin, L. and Xianglan, J. (2012), "Research on dynamic pricing of supply chain products based on channel advantages", Kybernetes, Vol. 41 No. 9, pp. 1377-1385. https://doi.org/10.1108/03684921211275432

Publisher

:

Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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