Abstract:
With the uncertain demand and supply,We study a domestic and oversea dual-sourcing procurement with dynamic purchasing price for oversea supplier. We propose a Stackelberg Game model to obtain the optimal order quantities for the manufacturer and the optimal production quantities for two suppliers. We analyze the influence of the risk-sharing factor of the manufacturer with oversea supplier and the initial oversea purchasing price on the manufacture optimal order quantities and the supplier optimal production quantities. We certified dynamic price policy can reduce the risk of offshore market price for the manufacturer,and help the manufacturer to obtain more profit. And we find that(1)When the initial purchase price in the dynamic price is less than the average of the overseas market price,the optimal order quantities of the manufacturer decrease as the risk sharing factor increases.(2)The optimal order quantity of the manufacturer decreases as the initial purchase price in the dynamic purchase price increases. Our research can benefit manufacturers and suppliers who face uncertainty of international purchasing price.