DYNAMIC PRICING IN A DUAL-CHANNEL SUPPLY CHAIN WITH A FIXED AMOUNT OF PRODUCTS IN DISRUPTION OCCURRING CONDITIONS AND STOCHASTIC DEMAND

Sanctions imposed by the West led to a period of economic stagnation in Iran in recent years. Automobile industry is among the industries that suffered from substantial losses from the sanctions. These sanctions were originated generally due to uncompensated damages incurred to automobile manufacturing supply chain process. Iran Khodro Company (IKCO) had been prohibited from Peugeot Company of France; hence, IKCO supplied its parts and components requirements via an intermediate country like Turkey in sanctions periods. Saipa proceeded to purchase production lines of Chinese automobiles and launched producing this country's automobiles in order to respond to disruptions caused by the sanctions. These Chinese automobiles have been considered as competitors of IKCO's products since they were produced. For these reasons and the profound importance of dual-channel supply chain for profitability and its widespread use in world industries, this study examines a decentralized dual-channel supply chain which comprises two competing manufacturers producing a different but substitutable product, and offering their product through internet called E-direct channel, and common retailer namely retail channel. Stochastic demand faced all the channels is reference price and other channels' selling price dependent. This issue faces multiple periods and in some periods, one manufacturer confronts with disruption in production cost that is excluded to cost of parts and components. The game that is used in this study is Nash game due to the independency of the chain's members in decision-making. This study also employs cooperative game as a strategy to respond to the disruption. Solution methods used in the Nash and cooperative games are respectively heuristics algorithm and League Championship Algorithm (LCA) metaheuristic. Results obtained from solving the problem with the data acquired from IKCO (these data are related to 2011 and 2012) demonstrate that the cooperative game is more profitable for all chain's members than the Nash game. Furthermore, optimum production level for each manufacturer and optimum range of wholesale price of the second manufacturer during disruption periods are obtained.