Ordering and transferring model of dual-channel supply chain with delivery time difference

Purpose This paper aims to explore optimal pricing policies and characteristics of a two-level dual-channel supply chain under price- and delivery time-sensitive demand. Besides price of the product, the delivery lead time is also a crucial factor in customers’ purchase decisions. A longer delivery lead time would diminish customers’ acceptance and faithfulness on the online channel, while a shorter delivery lead time would lead to incorporation of a substantial amount of logistics costs. In formulation of mathematical model, the effects of delivery lead time on the manufacturer and the retailer’s pricing strategies and profits in cooperative and non-cooperative dual-channel supply chain are explained analytically. Design/methodology/approach The analytical models are formed for both non-cooperative and cooperative scenarios under inconsistent and consistent pricing. The authors examine whether revenue sharing (RS) contract or delivery cost sharing contract can solely coordinate the dual-channel supply chain. If a single contract fails, then the combination of RS contract with delivery cost sharing to achieve channel coordination is discussed. Findings It is found that the RS or delivery cost sharing contract cannot coordinate the channel individually but revenue and delivery cost sharing contract jointly coordinate the channel. All analytical results are illustrated numerically, along with sensitivity analysis. Research limitations/implications There are many correlated issues that need to be further investigated. First, one good extension to this research may include the consideration of the channel structure with competitive retailers. It will be interesting to analyze the performance of coordination mechanisms by considering the retailer as a Stackelberg leader in retailing. Originality/value The findings and subsequent methodological discussions aim to provide practical guidance to retailers who are allowing customers to choose how, when and where they interact and purchase by offering a combination of websites (fully functional and mobile-enabled), catalogs and stores with increasing convergence of channels.

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Profits Optimization Reasearch of Dual-Channel Supply Chain Oriented to Manufacturers Online Customization and Traditional Retail

CONVERTER ◽

10.17762/converter.82 ◽

2021 ◽

pp. 498-517

Author(s):

Sihua Xu, Xiaoying Ju

Keyword(s):

Supply Chain ◽

Management Practices ◽

Optimization Theory ◽

Enterprise Management ◽

Delivery Time ◽

Decentralized System ◽

Dual Channel ◽

Decision Variables ◽

Supply Relationship ◽

Dual Channel Supply Chain

Under the background of "Internet +", increasing manufacturers sell standard products through retail channels and sell customized products in electronic channel. The competition about dual-channel supply, relationship between production cost and delivery time and the influences of online market acceptance, product customization attribute value, price and delivery time on online customization and traditional retail markets are considered, based on the decision variables of the price of custom and standard products and the guaranteed delivery time, the Stackelberg models are constructed respectively for the manufacturer-led and retail-led supply chain under decentralized system and the overall profits maximization of the supply chain is modeled under centralized system, the existence and uniqueness of the optimal solutions is proved by the optimization theory. The optimal decisions, market demands and enterprises profits under different systems are compared through numerical examples, the relation between the sensitivity coefficients and the optimal enterprises profits are obtained through the parameters sensitivity analysis. The idea of model construction and relevant conclusions are of reference and significance for manufacturing enterprise management practices.

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