A two-price policy for a newsvendor product supply chain with time and price sensitive demand.

•Considering pricing- and ordering-decisions when product obsolesces over its lifecycle.•Enabling retailer to decrease the retail-price at midlife with/without manufacturer's-rebate.•Wholesale-price-only and buyback policies are compared with the retail-price-decline policies.•We counterintuitively find that manufacturer's-rebate decreases (increases) retailer’s (manufacturer's) profit.•We find that none of the policies achieves channel efficiency.