scholarly journals Investigating Inventory Strategy Under Demand Distribution Fluctuation in Dual-Channel Supply Chain

2021 ◽  
Vol 8 ◽  
Author(s):  
Nai-Ru Xu ◽  
Jie Cheng ◽  
Zheng-Qun Cai
Keyword(s):  
Supply Chain ◽  
Inventory Management ◽  
Distribution System ◽  
Demand Uncertainty ◽  
Management Problem ◽  
Market Demand ◽  
Supply Chain System ◽  
Demand Distribution ◽  
Dual Channel ◽  
Dual Channel Supply Chain

When manufacturers construct a dual-channel distribution system, which includes online and offline sales channels, they need to solve the inventory management problem to ensure supply and reduce inventory costs of the supply chain system. The dual-channel supply chain is the research object, and the inventory decision model is designed to achieve optimal profit when market demand is divided into online and offline demands. The results of the numerical analysis and simulations, conducted using MATLAB, indicate that both the manufacturer and the retailer increase their inventories and that their profits decrease when demand uncertainty increases. Besides, the increase in the online demand ratio causes the increase in the manufacturer’s inventory and reduces the profits of the retailer and the entire supply chain.

Pricing and Inventory Strategy of Dual-channel Supply Chain under Random Demand and Retailer's Capital Constraint

2015 ◽  
Vol 9 (1) ◽  
pp. 30-46 ◽  
Author(s):  
Hehua Fan ◽  
Yongwei Zhou
Keyword(s):  
Supply Chain ◽  
Demand Uncertainty ◽  
Distribution Channels ◽  
Optimal Pricing ◽  
Supply Chain System ◽  
Profit Model ◽  
Chain System ◽  
Dual Channel ◽  
Inventory Strategy ◽  
Dual Channel Supply Chain

A dual-channel supply chain system composed of one manufacturer and one retailer is considered in this paper, which existed uncertainty demands in both distribution channels and capital constraint on retailer. It set up the profit model of manufacturer dominated dual-channel supply chain system, studied to the optimal pricing and inventory strategies of decentralized and centralized supply chain, obtained the optimal pricing and inventory strategy of the two kinds of supply chain system. The analysis to the optimal solution indicated that the demand uncertainty of two distribution channels, deferred-payment rate etc, are all have certain influence relation on the pricing strategies of manufacturer and retailer. Numerical experiment has showed the effectiveness of the conclusions.

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 Optimizing a bi-objective location-allocation-inventory problem in a dual-channel supply chain network with stochastic demands

2021 ◽  
Author(s):  
Aida Rezaei ◽  
Tina Shahedi ◽  
Amir Aghsami ◽  
Fariborz Jolai ◽  
Hamidreza Feili
Keyword(s):  
Supply Chain ◽  
Demand Uncertainty ◽  
Test Problems ◽  
Supply Chain Network ◽  
Periodic Review ◽  
Inventory Problem ◽  
Location Allocation ◽  
Dual Channel ◽  
Grasshopper Optimization Algorithm ◽  
Dual Channel Supply Chain

Integrating strategic and tactical decisions to location-allocation and green inventory planning by considering e-commerce features will pave the way for supply chain managers. Therefore, this study provides an effective framework for making decisions related to different levels of the dual-channel supply chain. We provide a bi-objective location-allocation-inventory optimization model to design a dual-channel, multi-level supply chain network. The main objectives of this study are to minimize total cost and environmental impacts while tactical and strategic decisions are integrated. Demand uncertainty is also addressed using stochastic modeling, and inventory procedure is the periodic review . We consider many features in inventory modeling that play a very important role, such as lead time, shortage, inflation, and quality of raw materials, to adapt the model to the real conditions. Since a dual-channel supply chain is becoming more important for sustainable economic development and resource recovery, we combine online and traditional sales channels to design a network. We generate five test problems and solve them by using the augmented ε-constraint method. Also, the Grasshopper optimization algorithm was applied to solve the model in a reasonable time for a large size problem. In order to provide managerial insights and investigate the sensitivity of variables and problem objectives with respect to parameters, sensitivity analysis was performed.

scholarly journals Research on the Maritime Logistics Pricing Model of Risk-Averse Retailer-Dominated Dual-Channel Supply Chain

2018 ◽  
Vol 25 (s2) ◽  
pp. 107-116
Author(s):  
Qing Fang ◽  
Zeping Tong ◽  
Liang Ren ◽  
Ao Liu
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Wholesale Price ◽  
Risk Averse ◽  
Market Demand ◽  
Maritime Logistics ◽  
Decentralized Supply Chain ◽  
Dual Channel ◽  
On Line ◽  
Dual Channel Supply Chain

Abstract Price decision is studied in a risk-averse retailer-dominated dual-channel supply chain, which consisting of one manufacturers and one retailer with both off-line and on-line channels. Firstly, two mean-variance models in centralized and decentralized supply chain are established. Secondly, the optimal solutions under the two decision modes are compared and analyzed. The results shows that the price of dual-channel of retailer decreased with the increase of retailers’ risk- aversion coefficient and the standard deviation of the fluctuation of market demand, while the wholesale price changes is on the contrary; in addition, when the market demand is greater than a certain value, the prices of dual channel are correspondingly higher in decentralized supply chain than in centralized supply chain, and vice versa. In addition, when the retailer’s risk aversion is in a certain interval, the expected utility of the whole supply chain is greater in centralized supply chain than in decentralized decision, and vice versa. Finally, a numerical example is given to verify the above conclusions.

Optimal Independent Pricing Strategies of Dual-Channel Supply Chain Based on Risk-Aversion Attitudes

2018 ◽  
Vol 35 (02) ◽  
pp. 1840004 ◽  
Author(s):  
Zheng Liu ◽  
Qi Xu ◽  
Kun Yang
Keyword(s):  
Supply Chain ◽  
Risk Aversion ◽  
Risk Attitude ◽  
Substitution Effect ◽  
Pricing Strategies ◽  
Supply Chain System ◽  
Dual Channel ◽  
Dual Channel Supply Chain ◽  
The Impact ◽  
Independent Model

Dual-channel supply chain system, channel optimization is influenced by channel attitude toward risk, in which risk is classified as general risk and interruption risk. To consider lead time may bring out supply conflicts, substitution effect of online channel and ratio of promotional cost are introduced and an independent model is developed. Based on that, the impact of interruption risk under risk-aversion attitude on both channels is further studied. Finally, it is proved how the risk attitude influences pricing and profit strategy.

scholarly journals The Entropy Complexity of an Asymmetric Dual-Channel Supply Chain with Probabilistic Selling

Entropy ◽  
2018 ◽  
Vol 20 (7) ◽  
pp. 543 ◽  
Author(s):  
Yimin Huang ◽  
Qiuxiang Li
Keyword(s):  
Supply Chain ◽  
Stable State ◽  
Channel Structure ◽  
Flip Bifurcation ◽  
Supply Chain System ◽  
Chain System ◽  
Dual Channel ◽  
Decision Variables ◽  
The Stability ◽  
Dual Channel Supply Chain

Considering consumers’ attitudes to risks for probabilistic products and probabilistic selling, this paper develops a dynamic Stackelberg game model of the supply chain considering the asymmetric dual-channel structure. Based on entropy theory and dynamic theory, we analyze and simulate the influences of decision variables and parameters on the stability and entropy of asymmetric dual-channel supply chain systems using bifurcation, entropy diagram, the parameter plot basin, attractor, etc. The results show that decision variables and parameters have great impacts on the stability of asymmetric dual-channel supply chains; the supply chain system will enter chaos through flip bifurcation or Neimark–Sacker bifurcation with the increase of the system entropy, and thus the system is more complex and falls into a chaotic state, with its entropy increased. The stability of the system can become robust with the increase of the probability that product a becomes a probabilistic product, and it weakens with the increase of the risk preference of customers for probabilistic products and the relative bargaining power of the retailer. A manufacturer using the direct selling channel may obtain greater profit than one using traditional selling channels. Using the method of parameter adjustment and feedback control, the entropy of the supply chain system will decline, and the supply chain system will fall into a stable state. Therefore, in the actual market of probabilistic selling, the manufacturers and retailers should pay attention to the parameters and adjustment speed of prices and ensure the stability of the game process and the orderliness of the dual-channel supply chain.

scholarly journals Designing a dual-channel supply chain network considering dependent demand and discount

2020 ◽  
Author(s):  
Fatemeh Fatemeh Askarian Amiri ◽  
Mohammad Mahdi Paydar ◽  
Abdul Sattar Safaei
Keyword(s):  
Supply Chain ◽  
Distribution System ◽  
Sensitivity Analyses ◽  
Model Parameters ◽  
Supply Chain Network ◽  
Dual Channel ◽  
Proposed Model ◽  
Dual Channel Supply Chain ◽  
Direct Market

Nowadays, organizations are faced with the growth of markets, satisfying customers’ demand and empowering in competing with rivals imposed new communication channels.  Along with the rapid advancement of the Internet, many suppliers are interested in creating an electronic channel in addition to the traditional retailer channel for direct market participation. This distribution system which includes retailer channels and direct channels is called a dual-channel supply chain. This study reviews a leather supply chain network that has created a discounted online channel to expand its market share. In this study, a multi-period multi-product mathematical model is developed to maximize the profit and examine the effect of different discount schemes on demand and sales. To verify the proposed model, a real-world case study is conducted. The sensitivity analyses examined the important model parameters. The obtained results show that the responsiveness of the main retailers could be more than 95%. According to the sensitivity analysis, an appropriate discount rate is reported in the direct channel.

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