scholarly journals Coordinating a Supply Chain With a Manufacturer-Owned Online Channel: A Dual Channel Model Under Price Competition

2013 ◽  
Vol 60 (2) ◽  
pp. 247-259 ◽  
Author(s):  
Jennifer K. Ryan ◽  
Daewon Sun ◽  
Xuying Zhao
Keyword(s):  
Supply Chain ◽  
Price Competition ◽  
Channel Model ◽  
Dual Channel ◽  
Online Channel

scholarly journals Strategic Provision of Trade Credit in a Dual-Channel Supply Chain

2021 ◽  
Vol 2021 ◽  
pp. 1-14
Author(s):  
Qin Wan ◽  
Yu Huang ◽  
Cuiting Yu ◽  
Meili Lu
Keyword(s):  
Supply Chain ◽  
Interest Rate ◽  
Price Competition ◽  
Trade Credit ◽  
Pricing Strategy ◽  
Dual Channel ◽  
Brick And Mortar ◽  
Online Channel ◽  
Dual Channel Supply Chain ◽  
Competitive Pricing

This study focuses on a a dual-channel supply chain that consists of a capital-constrained brick-and-mortar retailer and a manufacturer, where a manufacturer can simultaneously sell products through a traditional retail channel and a direct online channel. Supplementary pricing strategy and competitive pricing strategy are simulated in our model, and we find that the former one is the better choice for the manufacturer when the retailer suffers capital constraints. In our analysis, the capital constraint on retailer could mitigate the price competition between two channels, and it may be beneficial to the manufacturer under certain conditions. Our findings show that the manufacturer should strategically provide trade credit to retailers rather than unconditionally provide it. We present two trade-credit strategies (trade credit with positive interest rate and trade credit with zero interest rate) and suggest that the manufacturer should choose an appropriate trade-credit strategy according to the initial capital of the retailer. To guide the manufacturer when and how to provide trade credit, we conduct several numerical simulations based on our results and further plot out a graph to direct the manufacturer to an appropriate strategy of trade credit.

scholarly journals Introducing of Online Channel and Management Strategy for Green Agri-food Supply Chain based on Pick-Your-Own Operations

2019 ◽  
Vol 16 (11) ◽  
pp. 1990 ◽  
Author(s):  
Qifan Hu ◽  
Qianyun Xu ◽  
Bing Xu
Keyword(s):  
Supply Chain ◽  
Food Supply ◽  
Food Supply Chain ◽  
Farmer Cooperatives ◽  
Dual Channel ◽  
Green Food ◽  
Online Channel ◽  
Channel Mode ◽  
Optimal Mode ◽  
Brand Effect

The popularity of e-commerce has impacted traditional retail business. Farmer cooperatives running green agri-food pick-your-own (PYO) farms are facing the choice of whether or not to adopt online channels. PYO operation refers to consumers picking and purchasing the agri-food growing on a farm, and due to it being environmentally-friendly, healthy, and popular, it has been widely adopted by many farm cooperatives. This paper aims to discuss the practicality of introducing online channels to already established PYO farms in the green agri-food supply chain (GASC), who can personally take charge of the online channel or transfer it to one online retailer. Firstly, we constructed the demand functions of green agri-food by putting consumer utility, the freshness of agri-food, and transportation cost into consideration. Secondly, five decision models are built to characterize five operation modes, namely pure PYO mode, self-operated dual-channel mode, decentralized dual-channel mode, centralized dual-channel mode, and contractual cooperation mode. Furthermore, by taking price, demand, and profit with different modes into consideration, we are able to explore the introduction of online channels and green brand construction. Finally, numerical analysis is performed. We found that: (1) introducing an online channel is preferable strategy since the profit of the farmer cooperative in pure PYO mode is always less than the profit of a farmer cooperative in non-self-operated dual-channel modes; (2) the decision of self-operating an online channel is related to the fixed cost of creating a new online channel and the green food brand effect of online channel, and it is the optimal mode in some cases, while the contractual cooperation mode is the optimal mode in the remaining cases; and (3) the green food brand effect of online channels is does not necessarily improve with scale, and the initial freshness has a positive relationship to the profit, demand, and price of farmer cooperatives and online retailers.

scholarly journals Model Three-Level Dual-Channel Supply Chain pada Sistem Sentralisasi dengan Memertimbangkan Waktu Tunggu Pengiriman

d'CARTESIAN ◽  
2020 ◽  
Vol 9 (1) ◽  
pp. 72
Author(s):  
Shinta Nur Pratiwi Ramadhani ◽  
Ririn Setiyowati ◽  
Titin Sri Martini
Keyword(s):  
Supply Chain ◽  
Lead Time ◽  
Nonlinear Function ◽  
Optimal Solution ◽  
Global Market ◽  
Centralize System ◽  
Dual Channel ◽  
Total Profit ◽  
Online Channel ◽  
Dual Channel Supply Chain

AbstrakEra pasar global telah mengubah kebiasaan konsumen dalam membeli produk, sehingga konsumen dapat membeli produk melalui media online. Oleh karena itu, produsen mengembangkan media penjualannya melalui media online dan offline. Pada penelitian ini dikembangkan model three-level dual-channel supply chain dengan memertimbangkan waktu tunggu pengiriman pada penjualan melalui media online yang dilakukan oleh produsen serta mengembangkan media penjualan distributor sehingga distributor dapat menjual produk secara langsung ke konsumen. Konstruksi model bertujuan untuk mengoptimalkan keuntungan gabungan produsen, distributor, dan pengecer dengan sistem sentralisasi. Fungsi keuntungan gabungan merupakan fungsi nonlinear tanpa kendala dengan tiga variabel keputusan yaitu harga jual produsen pada media online, harga jual distributor langsung ke konsumen, dan harga jual pengecer ke konsumen. Selanjutnya, ditentukan solusi optimal model berdasarkan syarat perlu dan syarat cukup untuk fungsi multivariabel tanpa kendala. Berdasarkan simulasi numerik dan analisis sensitivitas dapat dilihat pengaruh faktor waktu tunggu pengiriman terhadap fungsi keuntungan gabungan yang optimal. Ditunjukkan bahwa lamanya waktu tunggu pengiriman sangat berpengaruh pada besarnya keuntungan optimal gabungan produsen, distributor, dan pengecer.Kata Kunci: Sentralisasi, Three-Level, Waktu TungguAbstractThe global market era changes the consumer behavior to shop the product, so the consumer can buy through online channel. Therefore, the producer develop the selling channel to sell their products through online channel and offline channel. In this research, we develop the three-level dual-channel supply chain by notice delivery lead time in the online channel used by the producer and develop selling channel from distributors so distributors can sell their product to consumer with direct selling. We construct the model with profit maximization motive of the system that consists producer, distributors, and retailer in the centralize system. The total profit function is nonlinear function without constrains with three decision variables. Furthermore, we determine the optimal solution of the model based on necessary and sufficient condition. Based on numerical simulations and sensitivity analysis we analyze the effect of delivery lead time strongly influences the optimal total profit system.Keywords: Centralize, Lead Time, Three-Level

scholarly journals Profit maximization models for a two-level dual-channel supply chain

2021 ◽  
Author(s):  
Raaid Batarfi
Keyword(s):  
Supply Chain ◽  
Profit Maximization ◽  
Channel Structure ◽  
Supply Chain System ◽  
Model Studies ◽  
Return Policy ◽  
Dual Channel ◽  
Before And After ◽  
Online Channel ◽  
Inventory Decisions

Internet-based technologies have changed the way firms do business and manage their supply chains. They have influenced customers’ purchase patterns, thereby motivating manufacturers to introduce online channels alongside traditional ones. Such structures are known as dual-channels. Nowadays, an increasing number of manufacturers offer a return policy to attract more customers and to stay competitive. Furthermore, learning-based continuous improvements help firms cope with market changes and be competitive, flexible and efficient. This thesis presents three main models: The first model investigates the effect of adopting a dual-channel (comprised of a retail channel and an online channel) on the performance of a two-level (vendor-retailer) supply chain. The objective is to maximize the total profit of the system by finding the optimal markup margin and inventory decisions before and after adopting the dual-channel. The results show that adding an online channel would increase the profit of the system. However, it creates a conflict due to competition between the retail and online channels. The second model studies a supply chain system, which is comprised of production, refurbishing, collection, and waste disposal processes. A return policy in which customers can return the purchased item for a refund is also considered. The purpose is to examine the effect of different return policies on the behavior of the system before and after adopting the dual-channel strategy. In both strategies, the model analyzes the change in the profit, the pricing and inventory decisions. The findings demonstrate that the more generous the return policy is, the higher the demand, the selling prices and the overall profit. The third model investigates the effects of learning and forgetting in the vendor’s production processes. It also considers single- and dual-channel strategies. Each channel structure can adopt any of six inventory policies. Learning and forgetting effects are considered in all policies except one. The objective is to maximize the profit of the system by finding the joint optimal pricing and inventory decisions. The results suggests that learning, despite being impeded by forgetting, reduces inventory-related costs thereby allowing the chain to reduce the prices of its product(s), which increases demand and subsequently sales.

scholarly journals Managing a Dual-Channel Supply Chain with Fairness and Channel Preference

2021 ◽  
Vol 2021 ◽  
pp. 1-10
Author(s):  
Xianjin Du ◽  
Weijie Zhao
Keyword(s):  
Supply Chain ◽  
Wholesale Price ◽  
Retail Price ◽  
Supply Chain Design ◽  
Operational Strategies ◽  
Dual Channel ◽  
Channel Preference ◽  
Online Channel ◽  
Set Up ◽  
Dual Channel Supply Chain

This paper investigates a dual-channel supply chain in which a manufacturer sells the product via an offline retailer or online store. The manufacturer sets the wholesale and online price, and the retailer decides the retail price with the retailer’s fairness preference and consumer’s online channel preference. Through investigating the combined impacts of fairness preference and channel preference on the enterprises’ operational strategies, this paper obtains some meaningful results. If a manufacturer thinks over the fairness preference, he decreases the wholesale price to mitigate a loss of retailer and benefit the supply chain design. The manufacturer intends to set up the online channel with a lower acceptance as the fairness preference grows. However, the gains from enhanced online channel acceptance cannot compensate for the manufacturer’s loss by the fairness effect that benefits the retailer. Moreover, the manufacturer cannot neglect the retailer’s fairness preference generating a “lose-lose” case for both members.

scholarly journals Research on Supply Chain Stability Driven by Consumer’s Channel Preference Based on Complexity Theory

Complexity ◽  
2018 ◽  
Vol 2018 ◽  
pp. 1-13 ◽  
Author(s):  
Yi Tian ◽  
Junhai Ma ◽  
Wandong Lou
Keyword(s):  
Supply Chain ◽  
Pricing Strategy ◽  
Largest Lyapunov Exponent ◽  
Dynamic Features ◽  
Chaotic State ◽  
Supply Chain System ◽  
Dual Channel ◽  
Channel Preference ◽  
Online Channel ◽  
Simulation Results

At present, most of the manufacturers are increasingly laying emphasis on dual-channel selling. The level of consumer’s preference is diverse with different channels. This study discusses a supply chain where one common manufacturer uses two different channels to sell product. The bounded rationality expectation has been applied to explore the decision-making mechanism in finalizing the wholesale prices and sales commissions for the manufacturer and retailers. In addition, the dynamic features of the system are simulated by 2D bifurcation diagram, the largest Lyapunov exponent, attractor variation, and time series. The simulation results suggest that if the adjustment speeds of the wholesale prices and sales commissions change drastically, the system would fall into a chaotic state. If the consumers prefer the online channel, the wholesale prices and sales commissions may be raised and vice versa. However, too strong preference of each channel will make the system appear to have a considerably periodic fluctuation, even chaos. In the meantime, the parameter adjustment method can help make the periodic or chaotic system go back to stability. Therefore, the significance of this study is with a practical meaning to make better pricing strategy for players in dual-channel selling supply chain system.

Pricing and Distribution Strategies in a Dual-Channel Supply Chain

2020 ◽  
Vol 13 (3) ◽  
pp. 23-37
Author(s):  
Guangye Xu ◽  
Hanguang Qiu
Keyword(s):  
Supply Chain ◽  
Price Competition ◽  
Wholesale Price ◽  
Theory Model ◽  
Distribution Strategy ◽  
Pricing Decisions ◽  
Dual Channel ◽  
Brick And Mortar ◽  
Dual Channel Supply Chain ◽  
New Distribution

Internet has revolutionized distribution channels. Online orders are forwarded to the brick-and-mortar store to make the fulfillment, which is a new distribution strategy in a dual-channel supply chain. However, there is little research on the value of using such distribution strategy in dual-channel setting. To fill this gap, this article considers a manufacturer marketing a product through a dual-channel supply chain, comprised of an online channel and an offline retail channel. We develop a game theory model to investigate the pricing decisions and the distribution strategies, as well as to examine the impacts of the new distribution strategy on price competition and the dual-channel supply chain member's profits. By comparing the results of the traditional distribution strategy and the new distribution strategy, we find that the new distribution strategy can soften price competition when the proportion of the revenue generated by the direct channel is high enough, while if the proportion is low enough, it may intensify price competition. We also find that the supply chain members can achieve a win-win situation when the wholesale price is higher, and the proportion is greater under the new distribution strategy.

Impact of wholesale price discrimination by the manufacturer on the profit of supply chain members

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Rofin TM ◽  
Biswajit Mahanty
Keyword(s):  
Supply Chain ◽  
Price Discrimination ◽  
Wholesale Price ◽  
Price Strategy ◽  
Content Type ◽  
Dual Channel ◽  
Channel Preference ◽  
Online Channel ◽  
Dual Channel Supply Chain ◽  
The Impact

PurposeThe purpose of this paper is to investigate the impact of wholesale price discrimination by a manufacturer in a retailer–e-tailer dual-channel supply chain for different product categories based on their online channel preference.Design/methodology/approachThis paper considers a dual-channel supply chain comprising of a retailer and an e-tailer engaged in competition. Game-theoretic models are developed to model the competition between the retailer and e-tailer and to derive their optimal price, optimal order quantity and optimal profit under (1) equal wholesale price strategy and (2) discriminatory wholesale price strategy. Further, a numerical example was employed to quantify the results and to capture the variation with respect to online channel preference of the product.FindingsIt is beneficial for the manufacturer to adopt a discriminatory wholesale price strategy for products having both high online channel preference and low online channel preference. However, equal wholesale price strategy is beneficial for the e-tailer and the retailer in the case of products having high online channel preference and in the case of products having low online channel preference, respectively.Practical implicationsThe study helps the manufacturers to maximize their profit by adopting the right wholesale price strategy considering the online channel preference of the product when the manufacturers are supplying to heterogeneous retailers.Originality/valueThere is scant literature on the wholesale price strategy of the manufacturer considering the heterogeneous downstream retailers. This paper contributes the literature by bridging this gap. In addition, the study establishes a link between the wholesale price strategy and online channel preference of the product.

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