Abstract
Article history: Received July 20, 2011 Received in Revised form September, 22, 2011 Accepted 4 October 2011 Available online 6 October 2011 This paper presents the decentralized supply chain with two suppliers and two competing retailers. It also investigates the sourcing and pricing strategies of two retailers in a decentralized supply chain system under a supply disruption environment. These retailers face their individual stochastic demand markets; however, they compete with each other through a two-stage price and service operation. The interactive dynamics among retailers is characterized, including the existence and uniqueness of the Nash equilibrium in service and price games demonstrated. © 2012 Growing Science Ltd. All rights reserved.
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