Dynamic Pricing and Supply Coordination with Reimbursement Contract under Random Yield and Demand

Figure 1

The algorithm process for dynamic pricing. 𝑝^max, maximized price for a kind of product; Δ, price markup coefficient; 𝐸[Π^∗_𝑐(𝑄,𝑥)], optimal expected profit of centralized system at the determined price 𝑝; 𝐸[Π^∗_𝑐(𝑄^∗∗,𝑥^∗∗)], optimal expected profit of centralized system at the determined price 𝑝^∗, while 𝑝^∗∈(0,𝑝^max].