Sustainability and Resilience Analysis in Supply Chain Considering Pricing Policies and Government Economic Measures

Sustainability and resilience are becoming increasingly critical in shaping supply chain pricing strategies. They ensure that supply chains can withstand disruptions while adhering to environmental and social standards, thereby securing long-term economic viability. Despite their importance, the integration of these two pillars with the promotion of domestic products remains under-explored, especially concerning their influence on the competitive dynamics within supply chains. This study seeks to bridge this gap by examining the influence of sustainability, resilience, and domestic product promotion on supply chain pricing strategies. We introduce a model that captures the interactions among a central supplier, multiple stores, and the government, focusing on strategies adopted by each stakeholder to maximize its profit while adhering to sustainability and resilience requirements. The study reveals that stores' pricing strategies are significantly influenced by their sustainability efforts, with the cost coefficient of these efforts and the elasticity of sustainability efforts directly affecting profit margins. It also finds that the supplier's resilience strategy involves allocating inventory reserves to manage wholesale pricing effectively. Governmental regulatory measures, through taxation and subsidies, are shown to play a crucial role in maintaining the balance between domestic and foreign products and providing flexibility to diversify product sources to cope with local disruptions. Finally, perspectives are provided to enrich the understanding of how sustainability and resilience can be considered and impact pricing policies of the whole network.

@article{SAIDI2024,
  title     = {Sustainability and Resilience Analysis in Supply Chain Considering Pricing Policies and Government Economic Measures},
  journal   = {International Journal of Advanced Computer Science and Applications},
  volume    = {15},
  number    = {1},
  year      = {2024},
  publisher = {The Science and Information Organization},
  author    = {Dounia SAIDI and Aziz AIT BASSOU and Jamila EL ALAMI and Mustapha HLYAL},
  doi       = {10.14569/IJACSA.2024.0150127},
  url       = {https://doi.org/10.14569/IJACSA.2024.0150127}
}