This section models the relationship between the suppliers, the manufacturer
and the retailers as a non-cooperative, multi-level, multi-objective Stackelberg
game and the model maximize sits net profit.In order to make the model easier to
follow and more applicable, we used a generic demand function D in this section
and after developing the proposed model and its solution algorithm, the results are
derived by a quadratic demand function estimated based on our case.
In this paper,three-planner leader-follower Stackelberg scenario is considered
whichrepresent bargaining power and market conditionsand the results. In this
scenario, retailers-manufacturer and manufacturer-suppliers are leader-follower
and there are no direct connections between retailers and suppliers. Hence, we call
it RMS model.