MCDM'25 - paper no. 1

 

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The Multi-Criteria Nature of Classical Decisions in Wholesale-Price Contracts with Product Exchange

Milena Bieniek, Jarosław Banaś

Abstract:

This theoretical article investigates the link between multi-criteria decision-making and wholesale-price contracts with consumer product exchange. It also presents optimal solutions to those contracts within a game-theoretic framework. In the proposed model, the retailer manages exchanges and shares associated costs with consumers. A Stackelberg game is used to determine optimal pricing and ordering strategies, with the manufacturer as leader and the retailer as follower. The supply chain is modelled analytically under stochastic multiplicative demand. Because of mathematical complexity, optimal quantities are derived numerically in Mathematica based on analytic profi t functions.

Keywords:

multiple criteria decision making, wholesale-price contract, Stackel- berg game, product exchange

Reference index:

Milena Bieniek, Jarosław Banaś, (2025), The Multi-Criteria Nature of Classical Decisions in Wholesale-Price Contracts with Product Exchange, Multiple Criteria Decision Making (19), pp. 5-23

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