A Game Theory Approach for Supply Chain Coordination Model with Incentive Mechanisms of Discount and Delay in Payments

Table 1

The initial values required for verification (according to the quantities presented in Aljazzar et al. [6]).

Parameter	Description	Quantity	Unit
	Setup/ordering cost of manufactured products	125	$/order
	Manufacturer’s setup/ordering cost	355	$/order
	Retailer’s setup/ordering cost	242	$/order
	Supplier’s setup/ordering cost	264	$/order
	Supplier’s production/purchase cost	20	$/unit
	Manufacturer’s production/purchase cost	28	$/unit
	Production/purchase cost of manufactured products	50	$/unit
	Retailer’s production/purchase cost	70	$/unit
	Customer’s production/purchase cost	98	$/unit
	Supplier’s financial holding cost	3	$/unit/year
	Manufacturer’s financial holding cost	4.2	$/unit/year
	Supplier’s financial holding cost	10.5	$/unit/year
	Financial holding cost of manufactured products	7.5	$/unit/year
	Supplier’s holding (storing) cost	2	$/unit/year
	Manufacturer’s holding (storing) cost	2.8	$/unit/year
	Retailer’s holding (storing) cost	7	$/unit/year
	Physical holding (storing) cost of manufactured products	5	$/unit/year
	Quantity of initial raw materials	1	—
	Supplier’s return on capital	10	%
	Manufacturer’s return on capital	8	%
	Retailer’s return on capital	5	%
	Manufacturer’s annual production rate	300	unit/year
	Retailers annual demand rate	1000	unit/year
	Elasticity of demand to a discount	70	—