Farnia Zarouri - Ph.D. Student, Industrial Engineering Department, Faculty of Engineering, Kharazmi University, Iran;
Alireza Arshadi Khamseh - Associate Professor, Industrial Engineering Department, Faculty of Engineering, Kharazmi University, Iran,
SHR Pasandideh - Associate Professor, Industrial Engineering Department, Faculty of Engineering, Kharazmi University, Iran,

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 a two-echelon 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, manufacturer-led Stackelberg game analyzes the intended problem heuristically. A numerical example is applied and the gained values of the variables are yielded.

Stochastic supply chain, Pricing, Discount approach, Stochastic demand, Heuristic method