A Differential Game of a Dual Distribution Channel

2009 ◽  
Author(s):  
Olivier Rubel ◽  
Georges Zaccour
Keyword(s):  
Differential Game ◽  
Distribution Channel ◽  
Dual Distribution

Coordinated Drop Shipping Commitment Contract in Dual-Distribution Channel Supply Chain

2012 ◽  
Vol 10 (4) ◽  
pp. 19-30 ◽  
Author(s):  
Jinshi Zhao ◽  
Yongrui Duan ◽  
Shijin Wang ◽  
Jiazhen Huo
Keyword(s):  
Supply Chain ◽  
General Trend ◽  
Distribution Channel ◽  
Customer Acquisition ◽  
Order Quantity ◽  
Terminal Position ◽  
Dual Channel ◽  
Dual Distribution ◽  
Fast Moving Consumer Goods ◽  
Demand Information

It is a general trend for retailers to develop dual channel to serve different customers. Engaging in internet and drop shipping has raised serious awareness and attention in the retailing field. Retailers are competing for dominance from suppliers using terminal position in many industries like appliance and fast moving consumer goods. In this paper, the authors examine such supply chain context and propose the commitment contracts for the drop shipping supply chain. In a drop-shipping model, the retailer focuses on marketing and customer acquisition, so it has more customer demand information than the supplier. To optimize profit, the retailer usually sends over-estimated demand information to the supplier. On the contrary, the supplier has to design a contract to control such a behavior of the retailer. Their study is to optimize the profit of the supplier and the whole supply chain using the commitment contract that can coordinate the retailer and the supplier in dual-channel and drop-shipping supply chain. If the retailer’s order quantity achieves centralized level, the profit of the supply chain can be maximized.

Optimal pricing strategy in uncertain dual distribution channel with retail services

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Saied Farham-Nia ◽  
Alireza Ghaffari-Hadigheh
Keyword(s):  
Supply Chain ◽  
Supply Chains ◽  
Distribution System ◽  
Uncertainty Theory ◽  
Distribution Channel ◽  
Pricing Strategy ◽  
Optimal Pricing ◽  
Content Type ◽  
Dual Distribution ◽  
Retail Services

Purpose The aim of this paper is to study the optimal pricing decision in a supply chain with a dual distribution channel in a centralized and decentralized decision-making systems and investigate the economic impact of retail services on pricing behaviors with respect to the power structures. Design/methodology/approach To reach the equilibrium behavior of decision-makers, two-stage optimization, the Stackelberg game and the Bertrand–Nash game have been used. Also, to explore the effect of environmental uncertainty on the behavior of decision-maker, demand functions are characterized as an uncertain price dependent, service dependent and channel dependent. Decision parameters are based on experts’ belief degree, in the sense of uncertainty theory initiated by Liu (2007). Findings Obtained results reveal that the retail services have a strategic role in the centralized supply chain and the decentralized supply chain with dominant manufacturer, while both the supply chain and the consumer suffer from higher environmental indeterminacy. Research limitations/implications This study is based on possible scenarios of dual distribution system only. Further research is recommended to investigate the applicability of the authors framework in different distribution systems. Practical implications The study findings are believed to be valuable for supply chains and organizations about to make a strategic decision on price of their good/service. Originality/value The paper contributes to the scarce literature on Uncertainty Theory initiated by Liu (2007), and combination of it with Game Theory for pricing in distribution system of supply chains. The study also contributes by investigating impact of non-price competitive factor (level of service) on pricing strategy.

Conflict management in dual distribution channel systems: the moderating role of learning capabilities

2020 ◽  
Vol 14 (4) ◽  
pp. 525-540 ◽  
Author(s):  
Ryuta Ishii
Keyword(s):  
Conflict Management ◽  
Distribution Channel ◽  
Management Systems ◽  
Content Type ◽  
Compensation Systems ◽  
Dual Distribution ◽  
Channel Performance ◽  
Moderating Role ◽  
Channel Systems

Purpose In dual distribution channel systems, integrated channels (manufacturer-owned) and independent channels (distributor-owned) are likely to adopt destructive behaviours. To suppress such behaviours, manufacturers need to implement conflict management systems. The purpose of this study is to examine the moderating role of conflict-learning capability (CLC) in the relationship between conflict management system and destructive behaviour. This study also investigates whether interactions between conflict management systems and CLC improve the overall channel performance. Design/methodology/approach Using survey data from 157 Japanese industrial manufacturers, this study conducted regression analyses and mediation analyses. Findings The results show that boundary and compensation systems have different effects on destructive behaviours. On the one hand, compensation systems with strong CLC have a larger impact, although those with weak CLC can also suppress destructive behaviours to some degree. On the other hand, boundary systems with strong CLC suppress destructive behaviours, but those with weak CLC do not. In addition, this study reveals that manufacturers with strong CLC can indirectly improve overall channel performance by implementing conflict management systems and suppressing destructive behaviours. Originality/value Previous studies reveal that boundary and compensation systems suppress destructive behaviours. However, these studies neglect the importance of organisational capability in the successful implementation of conflict management systems. By focusing on CLC, this study advances our understanding of dual distribution and channel conflict.

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