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- W4205561036 abstract "This study considers two competitive firms who order partially or perfectly substitutable products from supplier and compete in the market. Two profit-maximizing EOQ models are developed, one of which is price exogenous and the other is price endogenous. For price exogenous model, the optimal order quantity of the two firms are derived. For price endogenous model, there is a critical maximum retail price level such that two competitive firms have equilibrium solutions if and only if the maximum retail price is above that level. By comparing the equilibrium solution of the two firms, this study finds that the equilibrium solutions of the two firms are equal and conducts a sensitivity analysis on the equilibrium solutions: the maximum retail price of the boundary increase in fixed cost / degree of production substitution and the optimal order quantity, optimal retail price and maximum profit decrease in degree of production substitution. In addition, an extended model by considering the asymmetric linear inverse demand function is developed and obtain the respective implicit solution of the optimal retail price, optimal sales rate and optimal order quantity of two firms. Through numerical experiments, this study finds that the size relationship between the maximum retail prices of the two firms affects the size relationship of the corresponding optimal solutions. This study complements previous research on classical EOQ model and has important management significance." @default.
- W4205561036 created "2022-01-25" @default.
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- W4205561036 date "2021-09-27" @default.
- W4205561036 modified "2023-09-23" @default.
- W4205561036 title "An Analysis of EOQ Models for Two Competitive Firms" @default.
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- W4205561036 doi "https://doi.org/10.1145/3494583.3494605" @default.
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