Debrina Puspita Andriani, Sugiono, L. Tri Wijaya N. Kusuma, Riesa Aliya Tuhfah, Muhammad Rizki Ardiansah
This study explores pricing and order interval deci sions for competing manufacturers in a circular sup ply chain. With a growing focus on environmental sustainability in a business, two duopolistically com peting manufacturers offer different products to their customers, involving both new and remanufactured products. This research investigates the impact of various products on market demand by considering sell ing prices and inventories. It highlights how the selling price in the demand function is influenced not only by its price but also by competitors’ prices. Additionally, it emphasizes the pivotal role of the order interval in determining product inventory. This research performs a quantitative method in the operational research. Initially, it structures the demand and profit functions for each manufacturer. By developing a Nash equilib rium model on the game theory, this study determines the optimal decisions for pricing and ordering interval to maximize profit for each manufacturer. The numerical results confirmed that the optimal prices and prof its for the manufacturer selling new products (p1=67, π1=1443.96) are higher than the manufacturer (p2=65, π2=1435.22). Meanwhile, the comprehensive sensitiv ity analysis demonstrates that increasing the selling price (pi= 45~85) and order interval (Ti=5.2~6) will reduce the manufacturer’s profit. On the other hand, increasing the competitors’ selling price and order interval will strategically increase the manufacturer’s profit. Furthermore, increasing the wholesale price (wi=35~70) and holding cost (hi=0~15) will decrease the order interval, increase the selling price, and ulti mately reduce profit. The managerial insights summa rize that it is imperative for a manufacturer to deter mine the optimal selling price and order interval to gain a competitive advantage when making pricing and ordering interval decisions. © 2025, Authors.
Department of Industrial Engineering, Universitas Brawijaya, M. T. Haryono str., 167, Malang, 65145, Indonesia; Universitas Brawijaya, M. T. Haryono str., 167, Malang, 65145, Indonesia; Department of Industrial Engineering, Universitas Brawijaya, M. T. Haryono str., 167, Malang, 65145, Indonesia; Department of Industrial Engineering, Universitas Brawijaya, M. T. Haryono str., 167, Malang, 65145, Indonesia
