scholarly journals Pricing decision and coordination mechanism of dual-channel supply chain dominated by a risk-aversion retailer under demand disruption

2021 ◽  
Author(s):  
Bo Yan ◽  
Zhuo Chen ◽  
Yanping Liu ◽  
Xiaoxu Chen
Keyword(s):  
Supply Chain ◽  
Coordination Mechanism ◽  
Optimal Decision ◽  
Total Production ◽  
Optimal Decisions ◽  
Dual Channel ◽  
Pricing Decision ◽  
Decentralized Decision Making ◽  
Before And After ◽  
Dual Channel Supply Chain

This paper studies a dual-channel supply chain composed of a retailer and a supplier, and discusses the optimal decisions of supply chain participants under decentralized decision-making without and with demand disruption, respectively. By comparing the optimal decisions in the two scenarios, we find that the optimal decision after demand disruption is a linear function of the demand disruption plus optimal decision before demand disruption. Additionally, when the demand disruption is in interval , the optimal total production of the supply chain is equal before and after demand disruption. Moreover, the profits of the supply chain members and the value of their recognizing demand disruption are largely affected by the scale of demand disruption. Finally, the results show that the improved revenue-sharing contract can effectively improve the supply chain performance.

scholarly journals Pricing decision of a dual-channel supply chain with different payment, corporate social responsibility and service level

2021 ◽  
Author(s):  
Baogui Xin ◽  
Le Zhang ◽  
Lei Xie
Keyword(s):  
Supply Chain ◽  
Interest Rate ◽  
Supply Chains ◽  
Stackelberg Game ◽  
Service Level ◽  
Optimal Decision ◽  
Payment Methods ◽  
Dual Channel ◽  
Pricing Decision ◽  
Dual Channel Supply Chain

Strategies such as price, CSR, and service have an important impact on enterprises and supply chains. This paper proposes a two-echelon dual-channel supply chain composed of a manufacturer and a retailer. Considering the product pricing, CSR level, and service level in the supply chain, this paper employs the Stackelberg game to depict supply chain participants' optimal decisions and analyze the influence of explanatory variables on the optimal decision with retailer's payment methods. The results state that market share, service level, CSR, and financing interest rate significantly impact the pricing decision of all participants in the supply chain. In addition, strategies of CSR level and service level are also affected by the discount rate of advance payment, financing interest rate, return on investment, and opportunity cost rate. This paper incorporates CSR and service level into the objective function, considers a variety of retailers' payment methods, enriches the supply chain's pricing model, and is of great value to scientific decision-making of enterprises and sustainable development of supply chains.

Coordination Contracts of Dual-Channel Supply Chain Considering Advertising Cooperation

2021 ◽  
Vol 14 (1) ◽  
pp. 55-89
Author(s):  
Xue-Mei Zhang ◽  
Ying-Ying Li ◽  
Zhi Liu ◽  
Qian-Wen Li
Keyword(s):  
Supply Chain ◽  
Stackelberg Game ◽  
Marketing Channel ◽  
Coordination Mechanism ◽  
Optimal Decision ◽  
Supply Chain System ◽  
Chain System ◽  
Dual Channel ◽  
Dual Channel Supply Chain ◽  
The Impact

To study the impact of advertising cooperation on the decisions of dual-channel supply chain, a dual-channel supply chain system consisting of a single manufacturer and a single retailer is considered. The manufacturer can sell products to customers either through a direct marketing channel or through a traditional retail channel. This paper analyses the level of advertising investment and supply chain profits of centralized and decentralized dual-channel supply chains based on a Stackelberg game. Then, the decision models of dual-channel supply chain under different contracts are constructed, and how manufacturers can optimize the profits of both sides through an effective coordination mechanism is analyzed. The research results show that the improved advertising costs and revenue sharing contract can perfectly coordinate the dual-channel supply chain system. Numerical experiments illustrate the impacts of parameters on the optimal decision results.

scholarly journals Capacity Allocation and Compensation in a Dual-Channel Supply Chain under Uncertain Environment

2019 ◽  
Vol 2019 ◽  
pp. 1-12
Author(s):  
Jiaquan Yang ◽  
Xumei Zhang ◽  
Yating Huang ◽  
Jiafu Su ◽  
Sang-Bing Tsai ◽  
...  
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Expected Profit ◽  
Decision Making Process ◽  
Direct Selling ◽  
Channel Conflict ◽  
Dual Channel ◽  
Decentralized Decision Making ◽  
Capacity Uncertainty ◽  
Dual Channel Supply Chain

The dual-channel supply chain is widely adopted by main manufacturers, potentially incurring channel conflicts between the traditional retail channel which is owned by the independent retailer and the online channel which is directly managed by the manufacturer. The purpose of this paper is to deal with the scenario where channel conflicts may arise under production capacity uncertainty, when the manufacturer tends to privilege the direct selling channel over the retail selling channel. To achieve the goal, this paper establishes a Stackelberg game model consisting of a manufacturer and a retailer, studies the scenario where the manufacturer satisfies the direct selling channel first in the presence of capacity uncertainty, employs the decision optimization and the backward induction method to find the optimal inventory decision in the direct selling channel and the optimal order quantity decision making in the retail selling channel, and designs a compensation mechanism aiming to coordinate the channel conflict in the decentralized decision-making process. Results show that the optimal decisions aiming to maximize the expected profit of each supply chain member are not able to maximize the expected profit of entire dual-channel supply chain. However, when the manufacturer compensates the retailer’s profit loss based on the unsatisfied order and, in the meantime, adjusts the wholesale price to prevent the retailer which obtains the compensation from increasing order significantly, the compensation mechanism can coordinate the decision of each supply chain member, mitigate the channel conflict, maximize the expected profit of entire dual-channel supply chain, and achieve the Pareto improvement of supply chain members’ expected profit in the decentralized decision-making process.

scholarly journals Research on Quality Decisions and Coordination with Reference Effect in Dual-Channel Supply Chain

2020 ◽  
Vol 12 (6) ◽  
pp. 2296 ◽  
Author(s):  
Zhou Xideng ◽  
Xu Bing ◽  
Xie Fei ◽  
Li Yu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Service Quality ◽  
Product Quality ◽  
Cost Sharing ◽  
Supply Chain System ◽  
Optimal Decisions ◽  
Dual Channel ◽  
Reference Quality ◽  
Dual Channel Supply Chain

Although supply quality management has been studied extensively, one important marketing phenomenon, that is, reference effect has been rarely considered in dual-channel supply chain quality management literatures. In fact, the quality reference effect is also an important factor which influences consumer purchasing behavior. We aim to explore the influence of the reference effect on the optimal decisions and performance of a dual-channel supply. Thus, we formulate dynamic models that include the product quality reference effect and the service quality reference effect in a dual-channel supply chain system consisting of a manufacturer and a retailer under the different decision-making scenarios. Utilizing differential game theory, optimal decisions are obtained for the product quality and service quality decision under the different decision-making scenarios. In addition, the optimal decisions and profits are compared, then a service cost-sharing coordinating mechanism is proposed and proven to be effective in the supply chain system. The main results show when the initial reference service quality is low, the consumer service quality reference effect is beneficial to the manufacturer. The spillover effect of service quality is not conducive to the retailer and the manufacturer. When the initial reference product quality is low, both online and offline product quality reference effects are beneficial to the retailer and the manufacturer. The stable (or final) reference quality will not be affected by the initial reference quality. The sum of the two members’ profits under decentralized decision making is less than the total profit of the supply chain under centralized decision making. We design a cost-sharing coordinating mechanism to eliminate the double marginal effect.

scholarly journals Research on Dual Channel Supply Chain Decision-making of New Retailing Enterprises Considering Service Behavior in the era of Big Data

2022 ◽  
Vol 30 (9) ◽  
pp. 0-0
Keyword(s):  
Decision Making ◽  
Big Data ◽  
Supply Chain ◽  
Service Level ◽  
Sustainable Competitive Advantage ◽  
Dual Channel ◽  
Decentralized Decision Making ◽  
Starting Point ◽  
Dual Channel Supply Chain ◽  
Channel Service

Drawing from extant retailing and supply chain research, this paper studies the dual channel supply chain decision-making of member channel, and obtains the optimal price strategy, maximum demand and maximum total revenue of the supply chain of network channel and retailing channel under the centralized decision-making and decentralized decision-making respectively. The contributions of this study identify that investing in big data within a certain threshold can improve the channel service level, reduce the channel price and improve the income of the supply chain. Supply chain members improve the channel service level and increase the corresponding channel price. The supply chain can get the most advantages when manufacturers and retailers make centralized decisions. This paper provides a starting point for new retailing academic and practical research in a domain that is deficient in empirical research, provides the theoretical framework to new retailing enterprises and decision-making model for their sustainable competitive advantage.

A collaborative scenario-based decision model for a disrupted dual-channel supply chain

2019 ◽  
Vol 27 (3) ◽  
pp. 933-957 ◽  
Author(s):  
Jafar Heydari ◽  
Amin Aslani ◽  
Ali Sabbaghnia
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Distribution Systems ◽  
Channel Coordination ◽  
Content Type ◽  
Pricing Decisions ◽  
Collaboration Model ◽  
Dual Channel ◽  
Decentralized Decision Making ◽  
Dual Channel Supply Chain

Purpose Distribution systems usually utilize both traditional retailing channels in conjunction with e-channels. The purpose of this paper is to investigate a dual-channel supply chain, comprising a traditional retailing channel and an e-channel under disruption. By benchmarking against the centralized decision structure, the authors intend to propose a collaboration model to achieve channel coordination as well as more reliable decisions. Design/methodology/approach Four different channel disruption scenarios, with customers’ reaction toward disruptions, are examined, and then, optimal pricing decisions for both centralized and decentralized decision-making structures are extracted. Next, a collaboration mechanism based on the dominancy power of channel members is developed to entice all channel members to participate in channel coordination. By benchmarking the proposed collaboration model against both the decentralized/centralized structures a win–win solution is guaranteed for all channel members. In addition, the proposed model ensures more reliable decisions than the centralized structure, as it guarantees less fluctuated income levels. Findings This study shows, as the disruption probability grows, the channel profit decreases while the channel-retailing price increases. Furthermore, the exact alignment of the centralized decision-making approach and the proposed collaboration model is not achievable due to the problem infeasibility. Numerical experiments and sensitivity analyses benchmark the performance of the proposed collaboration mechanism against the centralized structure for the full alignment with centralized decision-making approach. Originality/value This study contributes to the channel conflict literature as jointly considers pricing decisions, disruptions and coordination. Further, consumers’ reaction toward disruption is analyzed through a transshipment agreement.

scholarly journals Return Decision Model of the Manufacturer-Leading Dual-Channel Supply Chain

2020 ◽  
Vol 2020 ◽  
pp. 1-15
Author(s):  
Xuelong Zhang ◽  
Hui Wang ◽  
Xiangzhong Zhao ◽  
Doudou Wu
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Decision Model ◽  
Price Discount ◽  
Compensation Policy ◽  
Change Rate ◽  
Policy Model ◽  
Dual Channel ◽  
Decentralized Decision Making ◽  
Dual Channel Supply Chain

According to the manufacturer-leading dual-channel supply chain return problem, a linear demand function considering the change rate of product interaction between the two channels and the change rate of market demand on the return price was established. Under the premise of no cross-return, this paper analyzes the changes of the optimal profit value of the manufacturer, retailer, and supply chain of the dual-channel supply chain in the context of centralized and decentralized decision-making and through the establishment of the price discount decision model and compensation strategy to coordinate the whole supply chain profit. This paper has shown that the use of the price discount decision model and compensation policy model could make the whole supply chain profit optimum value in decentralized decision-making situations equal to profit optimum value in the centralized decision-making situations, and price discount model could make manufacturers better to maximize profit considering the same return scenario, and that compensation policy model could be more helpful to maximize profits for retailers.

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