Table 2.
Parameters and notations
| Parameters | |
|---|---|
| Length of replenishment cycle | |
| Potential market demand | |
| Production cost for ith manufacturer | |
| Deterioration rate for NOP at all, | |
| Deterioration rate for ith manufacturer product, | |
| Percentage of potential market demand for OPs | |
| Coefficient of the price of the products on its market demand | |
| Coefficient of organicity effect on deterioration rate | |
| Deterioration cost of the products for the retailer | |
| Cost of maintaining a unit of any product in a period in the retail warehouse | |
| Wholesale price for ith manufacturer product | |
| Coefficient of the retailer price of similar product effect on the other manufacturer product demand | |
| Coefficient of organic level on OP demand | |
| Coefficient of sales effort level on NOP demand | |
| Coefficient of influence of the organic level of the OM on the demand of NOM | |
| Coefficient of influence of the level of sales effort of the NOM on the demand of OM | |
| Coefficient of the influence of organic investment cost on manufacturer cost | |
| Coefficient of sales effort on the production cost of NOP | |
| Percentage of OPs selling price, which is less than the selling price of NOP | |
| Percentage of NOPs selling price, which is considered as its wholesale price | |
| Retailer price for NOP | |
| Demand function of retailer for ith manufacturer product per cycle | |
| Order amount by the retailer for ith manufacturer product per cycle | |
| Amount of deterioration for ith manufacturer product in the retailer store per cycle | |
| The retailer’s stock level at period t byith manufacturer product | |
| The total amount of inventory carried by the retailer per cycle | |
| Total profit of OM in the decentralized, centralized, revenue-sharing contract, and cost-sharing contract conditions respectively per cycle | |
| Total profit of NOM in the decentralized and centralized conditions respectively per cycle | |
| Total profit of retailer in the decentralized, centralized, revenue-sharing contract, and cost-sharing contract conditions respectively per cycle | |
| Total profit of OM and retailer in centralized condition per cycle | |
| Decision variables | |
| Organic level of products for OM in decentralized and centralized conditions respectively | |
| Retailer price for OP in decentralized and centralized conditions respectively | |
| Sales effort level for NOM in decentralized and centralized conditions respectively | |