Optimal Decisions and Performance of a Supply Chain under the Strategic Consumer Behavior

This paper considers supply chain decisions when strategic consumers and myopic consumers exist simultaneously in the market. Researches start from a newsvendor problem with myopic consumers and strategic consumers, and the later will make decisions between purchasing at once and waiting purchase. Then equilibrium policies in the newsvendor setting are proposed. Later, our researches are extended to supply chain setting, in which equilibrium policies as well as impacts of strategic consumers behavior on the supply chain performance under the wholesale price contract are discussed. Results show that the profit of a centralized supply chain is dominated by that of a decentralized supply chain under an array of wholesale price contracts.