Optimal Decisions in a Single-Period Supply Chain with Price-Sensitive Random Demand under a Buy-Back Contract

Figure 4

The impact of buy-back price 𝑏 on the decentralized supplier’s profit 𝜋^∗_𝑑𝑆 and the decentralized retailer’s profit 𝜋^∗_𝑑𝑅 under the scenario where 𝛽=2, 𝑐=4, 𝐷(𝑝,𝜖)=200𝑝⁻²⋅𝜖, 𝜖∼𝑈[0,100]. (a) The impact of buy-back price 𝑏 on the decentralized supplier’s profit 𝜋^∗_𝑑𝑆 when 𝛽=2. (b) The impact of buy-back price 𝑏 on the decentralized retailer’s profit 𝜋^∗_𝑑𝑅 when 𝛽=2.

(a)

(b)