Abstract

In the supply chain management, the supplier can reduce its total cost by providing price discounts to restrict the
retailers’ replenishment intervals to multiples of a common replenishment interval. In order to accomplish this
purpose, supplier often determined a price discount that all the retailers can accept. After the cost of the supplier
was further considered, a better price discount was designed, which can meet all the retailers’ requirements to
maximize their benefits. And a new supplier’s minimization problem model based on stackelberg game was
designed also. Then a genetic algorithm is used to solve the supplier’s replenishment model. Experiment results
of the genetic algorithm demonstrated the feasibility and the effectiveness of the strategy.

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