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Stackelberg model based game theory approach for assortment and selling price planning for small scale online retailers

机译：基于Stackelberg模型的博弈论方法，用于小型在线零售商的分类和售价计划

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Assortment Planning (AP) is one of the most significant and challenging decision for online retailers (e-tailers) to make. This decision becomes even more complex when a supplier is considered as a distinctive participant in decision making model. In the bricks and mortar mode of retailing, retailers are more powerful than suppliers in getting the required goods in the required quantity. However, this is not the case for small scale e-tailers. Such e-tailers are faced with situations where large-scale retailers indirectly force the suppliers to refuse supplying to them. In such cases, effective AP decision making approaches are needed for small scale e-tailers to get the required goods to satisfy the customers' demand. While current advancement in smart cities provide a powerful platform and support for successful operations of online retailing, this needs to be supported by appropriated modeling approaches that assist the e-tailer in getting their required product assortment. In this paper, a game-theoretic model is developed to support the small scale e-tailer in AP decision making. Such that it has two strategies to decide from. The first strategy is that it can offer the product with supreme quality by procuring it from the main powerful supplier and the second strategy is to offer the product from a less popular brand. The first strategy is modeled as a non-cooperative Stackelberg supply chain in which the supplier plays a leader and the e-tailer is a follower and the second strategy is modeled as an assortment planning problem while considering utility degradation of providing alternative brand to the customers. Various analyses are done to find the best strategy in different scenarios before recommending the best strategy to be followed by the e-tailer in given situations. (C) 2019 Published by Elsevier B.V.
机译：分类计划（AP）是在线零售商（电子零售商）做出的最重要，最具挑战性的决策之一。当供应商被视为决策模型的独特参与者时，该决策将变得更加复杂。在实体零售模式中，零售商在获得所需数量所需数量商品方面比供应商更强大。但是，对于小型电子零售商而言，情况并非如此。这样的电子零售商面临着大型零售商间接迫使供应商拒绝向他们供货的情况。在这种情况下，小型电子零售商需要有效的AP决策方法来获取所需的商品，以满足客户的需求。尽管当前智能城市的发展为在线零售的成功运营提供了强大的平台和支持，但仍需要适当的建模方法来支持这一点，这些方法可帮助电子零售商获得所需的产品分类。在本文中，开发了一种博弈论模型来支持小规模电子零售商在AP决策中的应用。因此，它有两种策略可供选择。第一种策略是通过从主要的强大供应商那里购买产品，从而提供最高质量的产品；第二种策略是从不太受欢迎的品牌提供产品。第一种策略被建模为非合作的Stackelberg供应链，其中供应商扮演领导者，而电子零售商则是跟随者，第二种策略被建模为分类计划问题，同时考虑了向客户提供替代品牌的效用下降。在推荐给定情况下电子零售商应遵循的最佳策略之前，进行了各种分析以找到不同情况下的最佳策略。 （C）2019由Elsevier B.V.发布

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