Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Service Level

The rapid development of e-commerce technologies has encouraged collection centers to adopt online recycling channels in addition to their existing traditional (offline) recycling channels, such the idea of coexisting traditional and online recycling channels evolved a new concept of a dual-channel reverse supply chain (DRSC). The adoption of DRSC will make the system lose stability and fall into the trap of complexity. Further the consumer-related factors, such as consumer preference, service level, have also severely affected the system efficiency of DRSC. Therefore, it is necessary to help DRSCs to design their networks for maintaining competitiveness and profitability. This paper focuses on the issues of quantitative modelling for the network design of a general multi-echelon, dual-objective DRSC system. By incorporating consumer preference for the online recycling channel into the system, we investigate a mixed integer linear programming (MILP) model to design the DRSC network with uncertainty and the model is solved using the ε-constraint method to derive optimal Pareto solutions. Numerical results show that there exist positive correlations between consumer preference and total collective quantity, online recycling price and the system profits. The proposed model and solution method could assist recyclers in pricing and service decisions to achieve a balance solution for economic and environmental sustainability.

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Research on the Pricing Model of the Dual-Channel Reverse Supply Chain Considering Logistics Costs and Consumers’ Awareness of Sustainability Based on Regional Differences

Sustainability ◽

10.3390/su10072229 ◽

2018 ◽

Vol 10 (7) ◽

pp. 2229 ◽

Cited By ~ 8

Author(s):

Juhong Chen ◽

Di Wu ◽

Peng Li

Keyword(s):

Supply Chain ◽

Regional Differences ◽

Pricing Model ◽

Reverse Supply Chain ◽

Dual Channel

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Contract coordination of dual channel reverse supply chain considering service level

Journal of Cleaner Production ◽

10.1016/j.jclepro.2020.121071 ◽

2020 ◽

Vol 260 ◽

pp. 121071 ◽

Cited By ~ 4

Author(s):

Di Wu ◽

Juhong Chen ◽

Peng Li ◽

Ruijun Zhang

Keyword(s):

Supply Chain ◽

Service Level ◽

Reverse Supply Chain ◽

Dual Channel

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Pricing and service decision of dual-channel operations in an O2O closed-loop supply chain

Industrial Management & Data Systems ◽

10.1108/imds-12-2016-0544 ◽

2017 ◽

Vol 117 (8) ◽

pp. 1567-1588 ◽

Cited By ~ 27

Author(s):

Lingcheng Kong ◽

Zhiyang Liu ◽

Yafei Pan ◽

Jiaping Xie ◽

Guang Yang

Keyword(s):

Supply Chain ◽

Closed Loop ◽

Wholesale Price ◽

Revenue Sharing ◽

Service Level ◽

Return Rate ◽

Transfer Payment ◽

Channel Conflict ◽

Content Type ◽

Dual Channel

Purpose The online direct selling mode has been widely accepted by enterprises in the O2O era. However, the dual-channel (online/offline, forward/backward) operations of the closed-loop supply chain (CLSC) changed the relationship between manufacturers and retailers, thus resulting in channel conflict. The purpose of this paper is to take a dual-channel operations of CLSC as the research target, where a manufacturer sells a single product through a direct e-channel as well as a conventional retail channel; the retailer are responsible for collecting used products in the reverse supply chain and the manufacturer are responsible for remanufacturing. Design/methodology/approach The authors build a benchmark model of dual-channel price and service competition and take the return rate, which is considered to be related to the service level of the retailer, as the function of the service level to extend the model in the reverse SC. The authors then analyze the optimal pricing and service decision under centralization and decentralization, respectively. Finally, with the revenue-sharing factor, wholesale price and recycling price transfer payment coefficient as contract parameters, the paper also designs a revenue-sharing contract led by the manufacturer and explores in what situation the contract could realize the Pareto optimization of all players. Findings In the baseline model, the results show that optimal price and service level correlate positively in centralization; however, the relation relies on consumers’ price sensitivity in decentralization. In the extension model, the relationship between price and service level also relies on the relative value of increased service cost and remanufacturing saved cost. When the return rate correlates with the service level, a recycling transfer payment can elevate the service level and thus raise the return rate. Through analyzing the parameters in revenue-sharing contract, a point can be reached where lowering the wholesale price and raising the transfer payment coefficient will promote retailers to share revenue. Practical implications Many enterprises establish the dual-channel distribution system both online and offline, which need to understand how to resolve their channel conflict. The conflict is especially strong in CLSC with remanufacturing. The result helps the node enterprises realize the coordination of the dual-channel CLSC. Originality/value It takes into account the fact that there are two complementary relationships, such as online selling and offline delivery; used product recycling and remanufacturing. The authors optimize the strategy of product pricing and service level in order to solve channel conflict and double marginalization in the closed-loop dual-channel distribution network.

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Response surface methodology of dual-channel green supply-chain pricing model by considering uncertainty

Supply Chain Forum an International Journal ◽

10.1080/16258312.2020.1788904 ◽

2020 ◽

pp. 1-12 ◽

Cited By ~ 1

Author(s):

Januardi Januardi ◽

Erwin Widodo

Keyword(s):

Response Surface Methodology ◽

Supply Chain ◽

Response Surface ◽

Green Supply Chain ◽

Pricing Model ◽

Dual Channel

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

Journal of Global Information Management ◽

10.4018/jgim.291523 ◽

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.

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Research on Pricing and Service Level Strategies of Dual Channel Reverse Supply Chain Considering Consumer Preference in Multi-Regional Situations

International Journal of Environmental Research and Public Health ◽

10.3390/ijerph17239143 ◽

2020 ◽

Vol 17 (23) ◽

pp. 9143

Author(s):

Yao Kang ◽

Juhong Chen ◽

Di Wu

Keyword(s):

Stackelberg Game ◽

Consumer Preference ◽

Service Level ◽

Third Party ◽

Optimal Pricing ◽

Reverse Supply Chain ◽

Service Levels ◽

Dual Channel ◽

Transfer Prices ◽

High Level

Facing the increasingly serious waste electrical and electronic equipment (WEEE) recycling problem, recycling enterprises actively introduce online recycling channels, build dual channel reverse supply chains (DRSC), and use high-level recycling price and service levels to enhance consumers’ recycling enthusiasm and recycling amount. Nevertheless, in China, where the imbalance of regional development is widespread, the recycling center, third-party recycler (TPR), and third-party platform (TPP) are faced with the choices of pricing and service level when facing multi-regional consumers. This paper mainly answers the following questions: (1) When the recycling center and TPP introduce online recycling channels in multi-regional situations, how should they set online recycling price, transfer price, and service level? (2) When consumer preference for online channels changes in a certain region, how should recycling enterprises adjust their optimal pricing and service level decisions for different regions to maximize their own profits? How do the profits of recycling enterprises change? In order to solve the above problems, in this paper, we propose three pricing and service level decision models for the recycling center with online channels, namely, keeping prices unchanged, unifying all prices, and maximizing its own profits. By using the Stackelberg game to solve the model, we get the optimal pricing, service level decisions, as well as the maximum profits of the recycling center, TPP, and TPR when consumer preference changes. By analyzing the results of the model, we find that the change of consumer preference for online channels in a certain region will affect the decision and profits of multi-regional recycling enterprises. Specifically, consumer preference for online channels in a certain region will not only lead to an increase in the profits of the recycling center and TPP and a decrease in the profit of local TPRs, but also an increase in the profit of TPRs in other regions. In addition, at the beginning of introducing online channels, the recycling center can adopt two strategies to avoid conflicts among channels: keeping offline transfer prices unchanged and unifying all transfer prices, but the former promotes its economic profits more significantly.

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