Research on the ordering strategy problem in supply chain with profit allocation under two-level price-fluctuation sales.

This paper investigates optimal ordering strategies in supply chains under two-level price fluctuations and initial profit allocation. By utilizing Copula functions to model the complex relationship between fluctuating prices and uncertain demand, the study develops both continuous and discrete deci...

Full description

Saved in:
Bibliographic Details
Main Authors: Minchao Zheng, Ying Yu, Jiayang Xu, Yunzhi Mu
Format: Article
Language:English
Published: Public Library of Science (PLoS) 2025-01-01
Series:PLoS ONE
Online Access:https://doi.org/10.1371/journal.pone.0316377
Tags: Add Tag
No Tags, Be the first to tag this record!
_version_ 1849724319500861440
author Minchao Zheng
Ying Yu
Jiayang Xu
Yunzhi Mu
author_facet Minchao Zheng
Ying Yu
Jiayang Xu
Yunzhi Mu
author_sort Minchao Zheng
collection DOAJ
description This paper investigates optimal ordering strategies in supply chains under two-level price fluctuations and initial profit allocation. By utilizing Copula functions to model the complex relationship between fluctuating prices and uncertain demand, the study develops both continuous and discrete decision models for practical applications. A discrete algorithm is proposed to approximate the optimal solution, with its convergence rigorously proven. Numerical experiments demonstrate that profit allocation ratios significantly impact optimal order quantities and overall supply chain profit. Price fluctuations, particularly at the discount level, present critical challenges, necessitating flexible and adaptive ordering strategies. The study also investigates the influence of different Copula relationships on optimal ordering decisions, revealing how varying market conditions-from moderate price sensitivity to high volatility-affect optimal order quantities. By examining ordering strategies in the context of profit allocation contracts, this research offers a new perspective on how supply chain members can collaboratively navigate uncertain markets. The findings provide actionable insights for managers to mitigate risks, improve coordination, and seize new opportunities. Extending traditional models to incorporate price fluctuations and profit allocation, this study makes theoretical and practical contributions to supply chain management, offering robust strategies to strengthen supply chain resilience.
format Article
id doaj-art-9af62937b9de4950b3aba62ed28aaec8
institution DOAJ
issn 1932-6203
language English
publishDate 2025-01-01
publisher Public Library of Science (PLoS)
record_format Article
series PLoS ONE
spelling doaj-art-9af62937b9de4950b3aba62ed28aaec82025-08-20T03:10:47ZengPublic Library of Science (PLoS)PLoS ONE1932-62032025-01-01201e031637710.1371/journal.pone.0316377Research on the ordering strategy problem in supply chain with profit allocation under two-level price-fluctuation sales.Minchao ZhengYing YuJiayang XuYunzhi MuThis paper investigates optimal ordering strategies in supply chains under two-level price fluctuations and initial profit allocation. By utilizing Copula functions to model the complex relationship between fluctuating prices and uncertain demand, the study develops both continuous and discrete decision models for practical applications. A discrete algorithm is proposed to approximate the optimal solution, with its convergence rigorously proven. Numerical experiments demonstrate that profit allocation ratios significantly impact optimal order quantities and overall supply chain profit. Price fluctuations, particularly at the discount level, present critical challenges, necessitating flexible and adaptive ordering strategies. The study also investigates the influence of different Copula relationships on optimal ordering decisions, revealing how varying market conditions-from moderate price sensitivity to high volatility-affect optimal order quantities. By examining ordering strategies in the context of profit allocation contracts, this research offers a new perspective on how supply chain members can collaboratively navigate uncertain markets. The findings provide actionable insights for managers to mitigate risks, improve coordination, and seize new opportunities. Extending traditional models to incorporate price fluctuations and profit allocation, this study makes theoretical and practical contributions to supply chain management, offering robust strategies to strengthen supply chain resilience.https://doi.org/10.1371/journal.pone.0316377
spellingShingle Minchao Zheng
Ying Yu
Jiayang Xu
Yunzhi Mu
Research on the ordering strategy problem in supply chain with profit allocation under two-level price-fluctuation sales.
PLoS ONE
title Research on the ordering strategy problem in supply chain with profit allocation under two-level price-fluctuation sales.
title_full Research on the ordering strategy problem in supply chain with profit allocation under two-level price-fluctuation sales.
title_fullStr Research on the ordering strategy problem in supply chain with profit allocation under two-level price-fluctuation sales.
title_full_unstemmed Research on the ordering strategy problem in supply chain with profit allocation under two-level price-fluctuation sales.
title_short Research on the ordering strategy problem in supply chain with profit allocation under two-level price-fluctuation sales.
title_sort research on the ordering strategy problem in supply chain with profit allocation under two level price fluctuation sales
url https://doi.org/10.1371/journal.pone.0316377
work_keys_str_mv AT minchaozheng researchontheorderingstrategyprobleminsupplychainwithprofitallocationundertwolevelpricefluctuationsales
AT yingyu researchontheorderingstrategyprobleminsupplychainwithprofitallocationundertwolevelpricefluctuationsales
AT jiayangxu researchontheorderingstrategyprobleminsupplychainwithprofitallocationundertwolevelpricefluctuationsales
AT yunzhimu researchontheorderingstrategyprobleminsupplychainwithprofitallocationundertwolevelpricefluctuationsales