Optimal Decisions in a Single-Period Supply Chain with Price-Sensitive Random Demand under a Buy-Back Contract

Figure 2

The impact of price elasticity 𝛽 on the decentralized supplier’s profit 𝜋^∗_𝑑𝑆 and the decentralized retailer’s profit 𝜋^∗_𝑑𝑅 under the scenario where 𝑏=2, 𝑐=4, 𝐷(𝑝,𝜖)=200𝑝^−𝛽⋅𝜖, 𝜖∼𝑈[0,100]. (a) The impact of price elasticity 𝛽 on the decentralized supplier’s profit 𝜋^∗_𝑑𝑆 when 𝑏=2. (b) The impact of price elasticity 𝛽 on the decentralized retailer’s profit 𝜋^∗_𝑑𝑅 when 𝑏=2.

(a)

(b)