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. 2022 Aug 12:1–33. Online ahead of print. doi: 10.1007/s10668-022-02603-0

Table 2.

Parameters and notations

Parameters
T Length of replenishment cycle
A Potential market demand
ci Production cost for ith manufacturer
θ0 Deterioration rate for NOP at all,0<θ0<1
θi Deterioration rate for ith manufacturer product,0<θi<1
α Percentage of potential market demand for OPs
β Coefficient of the price of the products on its market demand
ρ Coefficient of organicity effect on deterioration rate
cd Deterioration cost of the products for the retailer
h Cost of maintaining a unit of any product in a period in the retail warehouse
wi Wholesale price for ith manufacturer product
λ Coefficient of the retailer price of similar product effect on the other manufacturer product demand
γ Coefficient of organic level on OP demand
φ Coefficient of sales effort level on NOP demand
ξ Coefficient of influence of the organic level of the OM on the demand of NOM
η Coefficient of influence of the level of sales effort of the NOM on the demand of OM
ϑ Coefficient of the influence of organic investment cost on manufacturer cost
k Coefficient of sales effort on the production cost of NOP
y Percentage of OPs selling price, which is less than the selling price of NOP
z Percentage of NOPs selling price, which is considered as its wholesale price
p2 Retailer price for NOP
Dri Demand function of retailer for ith manufacturer product per cycle
Qri Order amount by the retailer for ith manufacturer product per cycle
Bi Amount of deterioration for ith manufacturer product in the retailer store per cycle
Irit The retailer’s stock level at period t byith manufacturer product
Iri The total amount of inventory carried by the retailer per cycle
πm1d,πm1c,πm1/rsc,πm1/csc Total profit of OM in the decentralized, centralized, revenue-sharing contract, and cost-sharing contract conditions respectively per cycle
πm2d,πm2c Total profit of NOM in the decentralized and centralized conditions respectively per cycle
πrd,πrc,πr/rsc,πr/csc Total profit of retailer in the decentralized, centralized, revenue-sharing contract, and cost-sharing contract conditions respectively per cycle
πc Total profit of OM and retailer in centralized condition per cycle
Decision variables
od,oc Organic level of products for OM in decentralized and centralized conditions respectively
p1d,p1c Retailer price for OP in decentralized and centralized conditions respectively
sd,sc Sales effort level for NOM in decentralized and centralized conditions respectively