Pricing in an integrated stochastic supply chain for perishable products considering a stochastic demand and price discount

Due to the increasing growth of the industrial activities worldwide and the importance of supply chain management in the growth and survival of the chain, this study examines the pricing and coordinating issues of an integrated supply chain for perishable products under two periods namely: production and selling periods. The inventory system in this problem is assumed integrated; That is to say, the retailer pays the holding cost to the manufacturer and stores its orders utilizing its equipment which the manufacturer uses in the production period. Considering discount approach as a waste management device due to facing a quality-dependent and stochastic demand, the problem is solved exactly and the best responses of the variables are obtained. A numerical example is applied and the best values of the variables are yielded.