≤0.8 and the optimal conditions are satisfied and the decision variables are positive, the results of this numerical example are obtained as follow: Figs 3 and 4 illustrate that by increasing the discount rate, the retail prices and wholesale prices follow an increasing trend.
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Retailer Stackelberg game in a supply chain with pricing and service decisions and simple price discount contract.
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Fig 6 shows that by increasing the discount rate, the first service level s 1 follows a decreasing trend and the second service level s 2 has an increasing trend.