A Discriminatory Pricing Model and Simulation to Different Markets of Eastern Route of the South-to-north Water Transfers Supply Chain
Wei Yang · Systems Engineering · 2008
The pricing is the key issue of operation and management of eastern route of the SNWT(south-to-north water transfers) in China.Based on supply chain and company of eastern route,we set up two kinds of Discriminatory Pricing Model to different market,we gave an expanded description of the pricing model based on OA(Operational Approach),designed take-or-pay pricing restrictions,the model is proved by simulation.It demonstrates that the supply chain nodes are favored more profits in the joint pricing model than Stackelberg pricing model win-win of the whole chain can be realized by designing the profit sharing.