Research on the pricing strategy of book-wholesalers under buy back policies

The wholesaler's pricing strategies in the publication supply chain in the buy back policy scenario is investigated. The objectives are to reduce the wholesaler's risk and to increase the efficiency of the supply chain. The business process with buy back policy of the publication industry is analyzed. A mathematical model for maximizing the profit is established. In the model, wholesale price, buy back price and maximum buy back rate are the main influential factors. Through simulation experiment, the relationship between the profit of the supply chain members and the influential factors are identified. Furthermore, the analytical expressions of the profit of the members and the whole supply chain are obtained through regression for the simulation results. Based on the analysis on the pricing process of the wholesaler and the characteristics of the profit functions of the supply chain members, the appropriate pricing policies of the wholesaler are proposed.