Pareto Improvement Strategy for Service-Based Free-Riding in a Dual-Channel Supply Chain

2014 ◽  
Vol 31 (06) ◽  
pp. 1450050 ◽  
Author(s):  
Bin Dan ◽  
Can Liu ◽  
Guangye Xu ◽  
Xumei Zhang
Keyword(s):  
Supply Chain ◽  
Rapid Development ◽  
Relative Size ◽  
System Optimization ◽  
Service Level ◽  
Free Riding ◽  
Pareto Improvement ◽  
Service Levels ◽  
Dual Channel ◽  
Dual Channel Supply Chain

With the rapid development of the Internet, many manufacturers nowadays are increasingly adopting a dual-channel strategy to sell their products. In this paper, we present an analytical framework in a single-channel supply chain and a dual-channel supply chain, respectively. We compare the optimal service levels under different scenarios to investigate the impacts of bidirectional free-riding and service competition on members' decisions. In order to realize system optimization, we propose contracts to coordinate the decentralized supply chain under different cases. We find that when a new channel is added, the retailer will always increase his service level to compete with the manufacturer, while the manufacturer needs to take the relationship with the retailer into consideration and decides whether to increase or decrease her service level. We also find that the contracts for different cases can make the optimal solutions the same as those under the centralized scenario by adjusting service levels based on the relative size of competition effect and spillover effect. Finally, we conduct numerical examples to verify the existence of Pareto improvement intervals and derive some managerial insights.

scholarly journals A Multi-Echelon Network Design in a Dual-Channel Reverse Supply Chain Considering Consumer Preference

2021 ◽  
Vol 18 (9) ◽  
pp. 4760
Author(s):  
Peng Li ◽  
Di Wu
Keyword(s):  
Supply Chain ◽  
Network Design ◽  
Environmental Sustainability ◽  
Rapid Development ◽  
Consumer Preference ◽  
Service Level ◽  
Mixed Integer ◽  
Reverse Supply Chain ◽  
Related Factors ◽  
Dual Channel

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.

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

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.

scholarly journals Decision-Making of Electronic Commerce Supply Chain considering EW Service

Complexity ◽  
2020 ◽  
Vol 2020 ◽  
pp. 1-13
Author(s):  
Yuyan Wang ◽  
Zhaoqing Yu ◽  
Liang Shen ◽  
Runjie Fan
Keyword(s):  
Decision Making ◽  
Supply Chain ◽  
Electronic Commerce ◽  
Service Providers ◽  
Rapid Development ◽  
Service Level ◽  
Network Economy ◽  
Service Levels ◽  
Decision Making Models ◽  
The One

With the rapid development of the network economy, it is a marketing strategy to provide an extended warranty (EW) service. Considering the differences in the EW service providers and dominant enterprises, this paper proposes four kinds of decision-making models and aims to study decisions of the electronic commerce supply chain, including EW price, sales price, and service level of e-platform. Through comparative analysis and numerical analysis, this research shows that, among four decision-making models, the highest system profit can be achieved when the seller provides the EW service and the e-platform dominates the system. For electronic commerce supply chain enterprises, whether to dominate the system or to provide EW service, it is conducive to the increase of profits. When the e-platform provides the EW service, the conclusion is that who dominates the system is the one who gets more profit. However, when the seller provides the EW service, the conclusion is that who dominates the system is the one who gets less profit. When the EW service is offered by the dominating enterprise, service levels of the e-platform are lower.

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

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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