Research on dynamic pricing of supply chain products based on channel advantages

Abstract

PurposeThe purpose of this paper is to study the pricing problem of product transfer price under the channel advantages; determine the structure models of optimal transfer price expectation; and compare the differences in pricing of different pricing dominant parties.Design/methodology/approachUncertain factors are introduced into dynamic pricing mathematics models; production and storage models are combined; the method of functional analysis is used to solve transfer pricing question under different advantage conditions; and price matching models in supply chain integration are put forth.FindingsThere is a proportional relationship between the optimal transfer price expectation and price fluctuation. The party which has channel advantages will gain relatively more profit, but the maximum revenue can be obtained only in the supply chain integration.Research limitations/implicationsThere is no appropriate empirical data to verify the models.Practical implicationsThe paper provides pricing reference method to monopoly competitive enterprises on different stages. The matching pricing models based on E‐commerce can deal with the price deviation caused by goal difference and random factors automatically.Originality/valueThe paper considers production and inventory pricing, reflects the influence of the whole pricing factors under different channel advantages, and puts forth dynamic matching pricing models and algorithm under the E‐commerce circumstances.